Real Estater Exam 3

Front 1

Which tool would a real estate investor use to seek to describe the human characteristics of consumers that may have bearing on their response to products, packaging, advertising and public relations efforts?

Back 1

psychographics

Front 2

Which factor does NOT affect the housing market segmentation?

Back 2

number of extended family living locally

Front 3

The first step in evaluating any property is to

Back 3

write a story.

Front 4

What seeks to relate the cash flow aspects of a property to the economic and social forces of its urban context?

Back 4

real estate market research

Front 5

Which step is NOT included in the Uniform Standards of Professional Appraisal Practice process?

Back 5

asking neighbors about the value of their properties

Front 6

The cost to reconstruct an existing building, at today’s dollar value, by replicating the building in its exact detail is called the

Back 6

reproduction cost.

Front 7

A seller’s investment value is

Back 7

the minimum amount he or she is willing to accept.

Front 8

The use of sale prices and first-year NOIs from comparable income properties to determine the going-in capitalization rate for the subject property is called the

Back 8

direct market extraction method.

Front 9

A lease that includes a clause requiring an 8% per year rent increase is referred to as a

Back 9

step up lease.

Front 10

Calculate the net operating income, given the following information:

Potential gross income: $295,000

Capitalization rate: 9%

Vacancy and collection losses: 8%

Selling expenses: 5 %

Sale price: $1,250,000

Back 10

$112,500

Front 11

The final price for each comparable property reached after all adjustments have been made is termed the:

Back 11

Final Adjusted Sale Price.

Front 12

The final price from each appraisal approach is termed the:

Back 12

Indicated Value.

Front 13

The final price after reconciliation of the answers obtained from two or more approaches is termed the

Back 13

Final Estimate of Value.

Front 14

A new house in good condition that has a poor floor plan would suffer from which type of accrued depreciation?

Back 14

Incurable functional obsolescence

Front 15

To reflect a change in market conditions between the date on which a comparable property sold and the date of appraisal of a subject property, which type of adjustment is made?

Back 15

Market conditions.

Front 16

The final price for each comparable property reached after all adjustments have been made is termed the:

Back 16

Final Adjusted Sale Price.

Front 17

The final price from each appraisal approach is termed the:

Back 17

Indicated Value.

Front 18

The final price after reconciliation of the answers obtained from two or more approaches is termed the

Back 18

Final Estimate of Value.

Front 19

A new house in good condition that has a poor floor plan would suffer from which type of accrued depreciation?

Back 19

Incurable functional obsolescence

Front 20

To reflect a change in market conditions between the date on which a comparable property sold and the date of appraisal of a subject property, which type of adjustment is made?

Back 20

Market Conditions

Front 21

The element of an adjustable interest rate that is the “moving part” is the:

Back 21

Index

Front 22

Which of these aspects of a mortgage loan will be addressed in the note rather than in the mortgage?

Back 22

Prepayment penalty

Front 23

A lender may reserve the right to require prepayment of a loan at any time they see fit through a(n):

Back 23

Demand clause

Front 24

When a buyer of a property with an existing mortgage loan acquires the property without signing the note for an existing loan the buyer is acquiring the property:

Back 24

Subject to the mortgage

Front 25

Which if these points in a mortgage loan would be addressed in the mortgage (possibly in the note as well)?

Back 25

escrows

Front 26

To finance property where either the borrower, the property, or both fail to qualify for the standard mortgage financing, a common nonmortgage solution is through the:

Back 26

Contract for deed.

Front 27

Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of the following except:

Back 27

Accelerate the debt.

Front 28

If the lender in a standard first mortgage wishes to foreclose cost effectively, it is crucial to have which clause in the mortgage:

Back 28

Acceleration clause

Front 29

A common risk that frequently interferes with a lender’s efforts to work out a defaulted loan through either nonforeclosure means or foreclosure is:

Back 29

Bankruptcy.

Front 30

The characteristics of a borrower than can be considered by a lender in a mortgage loan appreciation are limited by the:

Back 30

Equal Credit Opportunity Act.

Front 31

Foreclosure tends to be quickest in states that:

Back 31

Have power of sale.

Front 32

From a home mortgage lender’s perspective, which statement is true about the effect of bankruptcy upon foreclosure?

Back 32

Chapter 7 bankruptcy is the most “lender friendly” form.

Front 33

The most internationally oriented index rate for adjustable rate mortgages is:

Back 33

A LIBOR rate.

Front 34

A type of loan that has grown in volume in recent years which has raised concerns about predatory lending practices is the:

Back 34

Sub-prime mortgage

Front 35

A partially amortizing loan always will have

Back 35

a balloon payment

Front 36

With what type of loan security arrangement is the deed held by a neutral party and returned upon payment of the mortgage in full?

Back 36

Deed of trust.

Front 37

The Truth in Lending Act gives a home mortgage borrower how long to rescind a mortgage loan?

Back 37

Three days.

Front 38

Which statement is correct about the right of prepayment of a home mortgage loan?

Back 38

Most home mortgage loans have the right of prepayment without charge, but not all, and the borrower should check the loan carefully.