Real Estate Practice - Chapter 15: Real Property Value

15 Questions | Total Attempts: 105

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Real Property Quizzes & Trivia

Questions and Answers
  • 1. 
    Real estate "Value" is the relationship between a person and what a person wants. Therefore, it is through subjective feelings, emotions, and desires of people that value is determined.
    • A. 

      True

    • B. 

      False

  • 2. 
    "Price" by contrast, is the amount of money a seller is asking for a property or the amount of money a buyer offers on a property for sale or the actual amount of money that is paid for a property through a purchase and sale. Price is a fact while value is a subjective opinion.
    • A. 

      True

    • B. 

      False

  • 3. 
    An appraisal of real property is an estimate of value that is dermined by the seller and the seller's real estate agent.
    • A. 

      True

    • B. 

      False

  • 4. 
    A 1989 federal law known as the "Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), mandates state licensing or certification for real estate salesperson.
    • A. 

      True

    • B. 

      False

  • 5. 
    To comply with federal law, Pennsylvania passed a certification law in 1990 that more strictly regulated the appraisal of real estate. It is known as the Appraisers Certification Act.
    • A. 

      True

    • B. 

      False

  • 6. 
    To become a Pennsylvania Certified General Appraiser one must serve a 24 month apprenticeship for 2500 hours of related appraisal experience, complete 120 hours of classroom instruction in required courses and pass the Pennsylvania general appraiser's examination.
    • A. 

      True

    • B. 

      False

  • 7. 
    The requirements for the Pennsylvania appraisal license will become more strict as of January 1, 2008 and will substantially increase the required hours of approved course instruction for appraisal certification.
    • A. 

      True

    • B. 

      False

  • 8. 
    "Market price" is the worth of a property in the marketplace. "Market value" is the actual price at which a property is sold.
    • A. 

      True

    • B. 

      False

  • 9. 
    The "Sales Comparison Approach" to appraising is based on comparing the subject property with comparable properties. These "comps" should be as similar as possible to the subject property, be as close in proximity to the subject property, and preferably the "comps" should be based on sales in the previous 6 months to one year.
    • A. 

      True

    • B. 

      False

  • 10. 
    A comparative market analysis (CMA) can be prepared by a seller and his or her real estate agent, can be presented to a buyer, and is considered as a valid appraisal.
    • A. 

      True

    • B. 

      False

  • 11. 
    The "Cost Approach" to value is based on the assumption that the market value of a property can be determined by calculating the actual cost of building and land.
    • A. 

      True

    • B. 

      False

  • 12. 
    In the "Unit-In-Place Method" an appraiser would itemize the cost of each component that goes into new construction of a building and the labor involved in installing each component.
    • A. 

      True

    • B. 

      False

  • 13. 
    If correcting any form of physical deterioration would increase the value of the property by an amount that equals or exceeds the cost it would be considered an example of curable physical deterioration.
    • A. 

      True

    • B. 

      False

  • 14. 
    Constant traffic, excessive noise, environmental pollution, a high crime rate could all significantly decrease the market value of  a property. This is an example of curable external depreciation.
    • A. 

      True

    • B. 

      False

  • 15. 
    Capitalization is the process of determining the present value of a property from its future income.
    • A. 

      True

    • B. 

      False

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