Sure Tests Blog

Helping real estate professionals sharpen their skills through knowledge and training.

  • Home
    Blog Home Your starting point for finding interesting articles.
  • Categories
    Categories Displays a list of categories from this blog.
  • Archives
    Archives View a list of existing articles.
08
May

Valuation and Market Analysis Practice Questions

Valuation and Market Analysis Suretestsagent.com questions. Check them out!

 

54           Bob is the owner of a property and he builds a shed that extends 3.5 feet over the lot line onto a neighbor's property. The shed is example of a(n)              ENCROACHMENT             ENCUMBRANCE LICENSE                EASEMENT          RESTRICTIONAL RIGHT Property encroachment occurs when one land owner builds something that protrudes onto another lot. An easement is the right to use another's land without possessing it.         Valuation and Market Analysis

55           Corn and Soybeans that are planted to be harvested are best described as FRUCTUS INDUSTRIALES    EMBLEMENTS    CHATTEL              FRUCTUS NATURALES    Fructus Industrials literally means the fruits of industry. This is referring to crops and other annual plants that must be panted and harvested each year in order to produce. Emblements are crops that are harvested annually and considered personal property. If a tenant is evicted from a property but has yet to harvest his annual crops, he still holds the rights to those crops. Typically corn and soybeans would be considered emblements, but an apple tree that is not cultivated annually is not considered emblements.               Valuation and Market Analysis

56           Which if the following is not an example of real property?               RUG       BUILT IN MICROWAVE       STAIRWAY RAILING          GARAGE DOOR Real Property is defined as an immovable property consisting of land and/or buildings, which also includes the interests, benefits, and the rights on the ownership; a rug is not real property, the other three are real property.        Valuation and Market Analysis

57           A  property owner who leases his or her property is called the         LESSOR                LESSEE                 LICENSEE             VENDEE              The lessor and lessee are the parties to the lease. The lessor is the owner of the property who is the giver of the leasehold estate, and the lessee is the tenant, and is the receiving party in the lease.              Valuation and Market Analysis

58           A property owner who leases his or her property to a tenant, the tenant is called what in this relationship?       LESSEE                 LESSOR                LICENSEE             VENDEE              The lessor and lessee are the parties to the lease. The lessor is the owner of the property who is the giver of the leasehold estate, and the lessee is the tenant, and is the receiving party in the lease.            Valuation and Market Analysis

59           Which of the following is a  type of legal description that is based on a baseline in principle meridian?            RECTANGULAR SURVEY SYSTEM                LOT AND BLOCK               METES AND BOUNDS               LOCATION SURVEY         A government rectangular is a system that is in place to create of townships, which are drawn according to parallel lines then sub-divided into sections that are then again sub-divided into quarters, again sub-divided into half of quarters, quarters of quarters, etc. Metes and Bounds is the method often used for  surveying regular parcels of land by relating real property to surrounding landmarks.           Valuation and Market Analysis

60           What is the process that is described when waterborne silt is deposited into a lake or river bed, and gradually increases?       ACCRETION         SILTING                EROSION             CONTRIBUTION                Accretion is the gradual process of silt depositing into a lake or riverbed. Contribution is the set of rules that states an item is worth only what it contributes in value to the property. Erosion – Is the process, which is typically slow, of natural forces removing rock and dirt from one piece of real property and moving it to another. A common example of this would be water and wind.    Valuation and Market Analysis

61           What type of legal description references monuments and landmarks?       METES AND BOUNDS               ACREAGE             RECTANGULAR SURVEY SYSTEM                LOT AND BLOCK                Metes and Bounds is a surveyor's description of a parcel of real property, using carefully measured distances, angles, and directions, which results in legal description of the land. A metes and bounds description can reference monuments and landmarks. A rectangular survey – is a mathematically designed land description system that historically surveyors used over the largest parts of the U.S. to survey and identify land parcels mainly for rural, wild, or undeveloped land.   Valuation and Market Analysis

62           A PROPERTY is for sale and is having trouble selling on the market, the property has 6 bedrooms and 1 bathroom, the reason the property might be having a problem selling is due to       FUNCTIONAL OBSOLESCENCE      OBSOLESCENT SITUATION            CURB APPEAL     UNIDEAL SITUATION          A reduction in the usefulness or desirability of a property because of an outdated design feature, usually one that cannot be easily changed. In this case, not enough bathrooms.                Valuation and Market Analysis

63           Which of the following best describes an appraisal?            THE VALUE USUALLY SOUGHT FOR THE PROPERTY AT THE MARKET VALUE, GOOD FOR ONE DAY.         A GUARANTEED VALUE (GIVE OR TAKE 3%) FOR THE PROPERTY AT THE MARKET VALUE GOOD FOR ONE WEEK.          A VALUE GIVEN TO A PROPERTY BY THE BANK FOR TO DETERMINE THE AMOUNT OF A MORTGAGE.    ESTIMATES OF WHAT THE PROPERTY SHOULD SELL FOR ON THE OPEN-MARKET The process of valuing real property; The value usually sought for the property at the market value good for one day.     Valuation and Market Analysis

64           What is the name of the rule that says a property maintains its value best when the surrounding properties are similar in size, style, and function?          CONFORMITY     SUPPLY AND DEMAND              RELICTION          IDEAL SITUATION            Conformity is the rule that says a property maintains its value best when the surrounding properties are similar in size, style, and function?                Valuation and Market Analysis

65           What set of rules states an item is only worth what it contributes in value to the property? CONTRIBUTION                 CONFORMITY     FUNCTIONAL OBSOLESCENCE     SIMILARITY                 Contribution is the set of rules that states an item is worth only what it contributes in value to the property. A reduction in the usefulness or desirability of a property because of an outdated design feature, usually one that cannot be easily changed. In this case, not enough bathrooms.     Valuation and Market Analysis

66           What are the three most important aspects to remember when buying a house?      LOCATION, LOCATION, LOCATION     NEIGHBORHOOD, LOCATION, AND PROPERTY TAXES         CURRENT PRICE, PAST MARKET VALUE, LOCATION                CURRENT PRICE, PROPERTY TAXES, LOCATION    The most important aspects of average buyer of any property come down to the location of the property e.g.  Schools, parks, views, neighbors, jobs, transportation, safety, etcValuation and Market Analysis

67           Which of the following best describes an appraisal?            THE OPINION  OF AN APPRAISER OF THE VALUE OF THE PROPERTY FOR THAT DAY ONLY.           THE OPINION  OF AN APPRAISER OF THE VALUE OF THE PROPERTY FOR ONE YEAR                THE OPINION  OF AN APPRAISER OF THE VALUE OF THE PROPERTY FOR THAT 7 DAYS                A PRICE GUARANTEED TO BE OFFERED BY A POTENTIAL BUYER.                Because property transactions are so infrequent, an appraisal is most likely needed before the seller puts the real estate parcel on the market. Due to constantly shifting market conditions, the appraisal is only good for one day and there is no price guarantee.Valuation and Market Analysis

68           Which of the following best describes the rule that states that a property holds its value best when it is surrounded by similar properties in size, style and purpose?          CONFORMITY     COMPLIANCE      CONSISTENCY    CONTRIBUTION               The rule of conformity describes the idea that a property will hold its value best when it is surrounded by other, similar properties. Contribution is the set of rules that states an item is worth only what it contributes in value to the property.               Valuation and Market Analysis

69           Which of the following best describes the principal that states an addition or added structure to a parcel of land is does not necessarily add the cost of the improvement to the total value of the land?     CONTRIBUTION                CONFORMITY     CONSISTENCY    COMPLIANCE    The total cost of an improvement to a property does not necessarily equal the value the component adds to the property               Valuation and Market Analysis

70           The three most important characteristics to look for in real estate are        LOCATION, LOCATION, LOCATION     LOCATION, PRICE, SCHOOLS        PRICE, NEIGHBORHOOD, SCHOOLS           VALUE, LOCATION, SIZE                The phrase “Location, Location, Location” is a long time mantra of the real estate industry. The idea is to stress that the location of the property is bar far the most important aspect of a piece of property. It is also a helpful reminder to buyers that the property or house they are considering to buy, location is the most important aspect of real estate.      Valuation and Market Analysis

71           Which of the following best describes the principle that a buyer will not pay more for a property than comparable property that has recently been sold?    SUBSTITUTION                 CONTRIBUTION                 LOCATION           CONSISTENCY   A buyer will almost always compare comparable properties that have recently been sold, and will most likely only want to pay a similar amount. Ultimately if there are several other properties listed at a lower price but similar to the one the client has listed for more, the others will logically sell first.       Valuation and Market Analysis

72           What is an effective metric commonly used to evaluate the value of a piece of investment property?            EFFECTIVE GROSS INCOME           NET INCOME      INVESTMENT INCOME    COLLECTIONS LOSS INCOME        Effective gross income (EGI) is the metric used in rental properties to measure the total amount of income produced by a piece of property, plus all other income, less any vacancy costs. Contribution is the set of rules that states an item is worth only what it contributes in value to the property.     Valuation and Market Analysis

 

Trackback URL for this blog entry.

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Monday, 25 September 2017

Random Page - BTM Spacer



Exam Real Estate