Are You Smarter Than A Real Estate Agent?

13 Questions | By Maliburenter | Last updated: Mar 21, 2022 | Total Attempts: 3227

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Are You Smarter Than A Real Estate Agent? - Quiz

Test your knowledge in 15 questions about real estate prices, foreclosures, investment returns, and the mortgage interest deduction

Questions and Answers

1.

Are you a real estate agent?
2.

1. Looking at the long history of US home prices adjusted for inflation (1890 to 2008), how long has it historically taken for US home prices to double (for the same type and size of house in the same location)?
- A.
  
  5-10 years
- B.
  
  10-20 years
- C.
  
  20-50 years
- D.
  
  50-80 years
3.

Adjusted for inflation, had US real estate prices ever declined nationally before 2007?
- A.
  
  No
- B.
  
  Yes, less than one year out of ten
- C.
  
  Yes, about one year out of five
- D.
  
  Yes, prices adjusted for inflation fall about as often as they rise
4.

Can the value of a home drop so much that it has to be given away in order to find a new owner?
- A.
  
  Yes
- B.
  
  No
5.

What portion of US homeowners take the mortgage interest deduction?
- A.
  
  Less than 30%
- B.
  
  30-40%
- C.
  
  40-50%
- D.
  
  50-60%
- E.
  
  Over 60%
6.

If overall inflation is 3% per year (with similar rates of inflation for home prices, maintenance, and property taxes), buying a house with a fixed rate mortgage means that the cost of living in that house will:
- A.
  
  Stay the same for 30 years
- B.
  
  Rise by 1-3% per year
- C.
  
  Rise by 3%+ per year
7.

Through 12/31/05 (near the peak of the housing bubble), which investment had the highest return over the past 100 years?
- A.
  
  Stocks (Dow/S&P 500)
- B.
  
  High grade bonds
- C.
  
  Single family homes
8.

Do children of renters and homeowners living in adjacent homes/condos typically attend different public schools?
- A.
  
  Yes
- B.
  
  No
9.

If a stockbroker or investment advisor knowingly made misleading statements about historic returns on an investment to a potential investor, what could happen?
- A.
  
  Fines
- B.
  
  License revocation
- C.
  
  Arbitration/litigation
- D.
  
  Criminal penalties
- E.
  
  All of the above
10.

If a real estate agent made misleading statements about historic investment returns of real estate, what would most likely happen?
- A.
  
  Fines
- B.
  
  License revocation
- C.
  
  Arbitration/litigation
- D.
  
  Criminal penalties
- E.
  
  None of the above
11.

Which of the following groups files for bankruptcy most often, and is most likely to lose a home through foreclosure?
- A.
  
  Single men
- B.
  
  Single women
- C.
  
  Couples without children
- D.
  
  Couples with children
12.

If you have a 30 year fixed rate loan at 6% interest, how much of the principal will you have paid off after 15 years?
- A.
  
  Under 25%
- B.
  
  25-35%
- C.
  
  35-45%
- D.
  
  45-55%
- E.
  
  Over 55%
13.

In 2007, CA had 13.2 million houses, condos, and apartments. How many people in CA had real estate licenses?
- A.
  
  Under 300,000
- B.
  
  300,000-400,000
- C.
  
  400,000-500,000
- D.
  
  500,000-600,000
- E.
  
  Over 600,000