Residential Market Analysis Practice Exam

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• An investor expects a 15% return on a $550,000 project. The project is financially feasible if it is worth at least how much on completion?
• Competition is good for the market -- under what condition?
• Which of the following is commonly classified as a Special Purpose property?
• When appraising a property for __________ , an appraiser must determine the Highest and Best Use.
• Within the concept of Highest and Best Use, the use described as reasonably probable is:
• Which data type is described as being collected from field observations and primary sources for analysis?
• USPAP says that appraisers are cautioned to identify the exact definition of market value and ____________________.
• Which document guides a community's long-term development and land use?
• A property with restaurants and retail shops on the lower level and apartments on levels above is called a(n) ___________ property.
• A neighborhood is characterized by __________ land uses, whereas a district is composed of _________ land uses.
• Which term describes ownership by a single owner?
• Which category of forces affecting values includes zoning changes and property taxes?
• Which highest and best use criterion would require an appraiser to consider the topography of the site?
• A neighborhood described as homogeneous is said to be in conformity with which land use characteristic?
• Which form of ownership is designed for married couples and includes survivorship?
• Which of the following is NOT typically considered a government restriction on land use?
• The estate that represents the tenant's rights in a leased property is called the ______ estate.
• Which term is used for the value determined by the assessor for property tax purposes?
• A _______________ usually produces general marketing information for a geographic area.
• An announcement of the expansion of an industrial plant that is the region's major employer would likely result in __________.
• Book value is best described as which of the following?
• Absorption rate is used to describe the pace at which inventory is sold over a period, typically expressed as what?
• In assignments requiring personal verification of comparable sales with a party to the transaction, which party is not typically involved?
• Leasehold value pertains to a tenant's interest in a lease.
• Which forecasting approach uses projected demand and supply to predict market conditions?
• The legally and physically possible use which will yield the highest probable return on value in the reasonably foreseeable future, is the_______________ Use.
• Which highest and best use criterion would require an appraiser to consider Setbacks and Site Size restrictions?
• City programs to rehabilitate neighborhoods are examples of which policy tool?
• In a housing cooperative, the owner holds which asset?
• There were 36 sales in a subdivision in the last year, and there are currently 12 properties on the market. What is the monthly absorption rate?
• In the concept of Highest and Best Use, the component that reflects its financial viability is termed what?
• If there is an oversupply of homes available in a market to satisfy demand, this is known as _________________.
• Which term describes breaking the market into distinct components to identify trends?
• Because of the Principle of _______________ the appraiser's opinion of value is always "as of" a specific date or time.
• What is the minimum sale price required to achieve a 15% return on a $550,000 investment?
• When improvements are added, such as roads, water and sewer; then _________ becomes _____________.
• In market segmentation, the practice of breaking the market into smaller segments is primarily meant to improve what?
• Foundations are placed on top of __________ and serve to support the house.
• In a market with excess housing supply relative to demand, what is the expected movement in home prices?
• To measure the trends of the market area, the appraiser must ask questions about which items?
• The real estate market life cycle affects which attitudes of the buying public?
• Markets come in all sizes but, whatever the size, there is ______________ of a product or a service.
• If the individual property is one classified as a high-value property, the appraiser will identify the limited market for this type of property on the basis of the ______ within the defined market area.
• What measure do communities offer to rehabilitate a declining neighborhood?
• A property suffers from functional obsolescence because it lacks air conditioning. Installation of air conditioning would cost $15,000 and would increase the value of the property by $20,000. This functional obsolescence is ______________.
• A prediction of future market conditions based on comparing quantified estimates of future demand and future supply defines which analysis?
• In appraisal reports for mortgage transactions, the opinion of value is typically what?
• To study market trends, the appraiser segments the market into which elements to look for patterns?
• When supply and demand for a product or a specific type of property are in harmony, or when the principal agents of production are properly in sync, it is said that a(n) __________ situation exists.
• Eminent domain is the right of the government to take private property, for public good, with __________________.
• The cost basis for insurance values is which cost concept?
• In a Buyer's market, an appraiser is likely to find which condition?
• Mill Rate is equal to so much per ______________ of value.
• When improvements are added, such as roads, water and sewer, land becomes a __.
• _______________ Value is the price a property will sell for, if required to be sold very quickly.
• The process of Revitalization of a neighborhood is also called ______________________.
• What type of value is actually an accounting term?
• A corporation or trust that pools capital from many investors to acquire or finance real property is called a(n) __________________________.
• What is the median monthly rent for the same data set?
• Standardized facilities, services, and amenities can enhance the benefits of home ownership. This illustrates the Principle of ______.
• Another name for Renewal Period is _____________ Period.
• The concept describing the public's ability to purchase property is called what purchasing power?
• Which data type describes general market trends rather than specifics about individual properties?
• Inferred analysis is principally performed using ____________data, while Fundamental analysis relies primarily on _____________ data.
• _________________ analysis will relate to the client whether the market considers such a project worthwhile.
• Which term is used to describe a study that provides general marketing information for a geographic area?
• Supply usually what in relation to demand for a commodity or property?
• Which of these agencies agree in principle with the ANSI Standards?
• Restrictions on the use of a property in a market area may affect its ______________.
• The Consistent-use theory recognizes the property's which component?
• You add a swimming pool to your back yard at a cost of $30,000. It only adds $10,000 in value to the property. What economic principle does this best demonstrate?
• An exterior inspection of a single story residential property indicates a GLA of 1,600 square feet. An interior inspection reveals an entry foyer of 410 square feet and a 10 foot by 12 foot unfinished storage area not accessible from the interior of the house. The GLA of the home is_____________.
• The principle of Surplus Productivity states that after paying The costs of _____________________________ , any residual income is attributed to the land.
• Another name for Assessed Value is ______________ Value.
• All properties will go through __________ stages of the life cycle.
• In highest and best use analysis, which criterion would be used to determine the use that would yield the greatest net return?
• A property's present value is directly related to the perceived benefits to be received in the future. This is the Principle of _______________.
• Which description best describes value in Use?
• The Growth Cycle of a neighborhood is characterized by which condition?
• The market value of a property is $350,000 and the loan value is $262,500. What is the loan-to-value ratio?
• Legal, nonconforming uses can take the form of ______.
• What is the legally and physically possible use that yields the highest probable return on value in the reasonably foreseeable future called?
• In Fannie Mae's definition of value, it states that buyer and seller are ______________ motivated.
• Which of these would be considered specific data?
• All appraisal assignments require an opinion of Highest and Best Use. Which value concept is required to support this process?
• The concept that present value reflects expected future benefits informing current value is called what?
• Which factor determines legality for HBU?
• Which value concept represents worth to a particular investor or user, rather than the general market?
• Appraisers must develop an opinion of the property's highest and best use, first as though the land ___________, and then as the land is __________improved.
• Investment value relates to the preferences of a ______ investor.
• In a market area, there were 256 single-family sales last year, and there were 64 expired listings that did not sell. What is the expiration ratio for this area?
• Investment value is based on a(n) __________ investor's needs and desires.
• Market value is generally considered equivalent to _______________.
• What is the lowest monthly rent in the data set?
• The cost of a given amenity does not guarantee the ___________ of that particular item.
• Statistical analysis in appraisal uses formulas designed for the compilation of what kind of data?
• What is the first step in a feasibility analysis?
• The client and/or intended users can visualize the analysis by viewing which of the following?
• Which statement best describes Highest and Best Use?
• The expiration ratio can be interpreted as an indicator of market liquidity. Which option best represents this relationship?
• A residential property is currently zoned for residential use, but its highest and best use is expected to change to Light industrial use within the next 2-4 years. The subject property's current use is considered ___________________.
• The Principle of Substitution holds that an ___________ buyer will not spend more for a property than the cost of acquiring a suitable substitute property. Principle of Substitution.
• Value in Use is based on the property's _____________.
• Which data type is used to identify trends in the marketplace, as described in appraisal practice?
• A community's total employment is 77,700. The number of total core industry employees is 55,500. What is the base core multiplier?
• Research into the number of actual sales that have occurred in the neighborhood during the previous 12 month period what kind of data?
• Which appraisal method uses comparable sales to estimate value?
• The ability of market participants to purchase a property is called ____________.
• Appraisersforum.com is an online __________ for appraisers.
• In a changing real estate market, which side tends to adjust more slowly?
• Which of these is NOT one of the four agents of production?
• Going concern value includes an operating business with ______________________ assets.
• Which is NOT a type of framing?
• The information extracted and used in the assignment will be compared to verifiable data sources to ensure its __________.
• USPAP says that __ is a fact, or an estimate of fact.
• The market is _______ in a balanced situation.
• The capacity of a furnace heating system is measured in which unit?
• Sites may be analyzed using all these methods EXCEPT _______________.
• __________ Land cannot be separated.
• Which sequence lists siding materials from oldest to newest?
• Which statement about functional obsolescence is true?
• A single-family homesite is worth $50,000. The owner plans to build a 3,000 square foot home on it, at a cost of $400,000. When it is completed, the property will be worth $425,000. What is the problem here?
• Which criterion focuses on whether there is sufficient market demand and financial viability for the use?
• The status of the ____________________ of the community will determine the market for the foreseeable future.
• Part of the definition of Highest and Best Use is that it is "Legally _______________________..."
• A restaurant established in 1998; rezoned in 2005 to permit only residential uses. The restaurant use is permitted to continue its operations. What is this called?
• Which term describes data collected directly from original sources such as field surveys or property transactions?
• Which principle quantifies the rate and character of change involved?
• Which of these is NOT one of the inherent characteristics of land?
• The appraiser must perform the necessary market analysis to obtain enough information to __________.
• All of these are external factors that could affect the value of a property EXCEPT _____________.
• Appraisers must determine the appropriate level of analysis required for the assignment. This is known as ______________.
• Which statement is NOT true regarding market identification?
• To provide an estimate of the length of time it took to sell properties during the period of analysis, we can look at _______________.
• Which data type would most likely include information about property size, location, and recent sale prices of similar properties?
• What is the highest monthly rent in the data set?
• The development of a vacant land area is _____________ the highest and best use of the land.
• Which factor helps determine conformity in land use within a neighborhood?
• Which of the following is NOT an agent of production?
• Which term describes dividing data into meaningful subgroups for analysis?
• Who will ultimately determine what a given amenity will contribute to the overall property value? ________________.
• The _________ Standard is a standardized system for measuring residential properties.
• There were 36 sales in a subdivision in the last year, and there are currently 15 properties on the market. How long will it take the market to absorb this existing inventory?
• Which principle is illustrated when an improvement adds value by only a portion of its cost?
• Employing zero lot lines and attach the garage areas between two houses is called ___________ housing.
• An Apartment building has rents as follows: 800, 835, 850, 850, and 875 per month. What is the median of the rents?
• If the market tends to be local, which geographic level is most relevant for market analysis?
• If a market records 120 sales in a year, what is the approximate monthly absorption rate?
• Which of the following is an essential component when determining economically feasible use in Highest and Best Use?
• In the Consistent-Use Theory, the elements to be valued using the same highest and best use include which pair?
• A municipal building or a church are considered to be what type of properties?
• If there are two or more owners of a property and one dies, the deceased owner's share passes to heirs. This is described as _______________.
• The elements of nature that can affect value are described as which type of force?
• The attribute that ensures information used in an appraisal is trustworthy and verifiable is called?
• Determination of the highest and best use of the property needs to be _________________________ .
• Which highest and best use criterion would require an appraiser to consider the current zoning compliance?
• A loan is $180,000 and the loan-to-value ratio is 90%. What is the Market Value for this property?
• Only those uses which produce a ____________ are considered for the final test of maximum productivity.
• The special design of the particular structure, such as a church, may contribute to a __________.
• The length of time that a given structure will prove beneficial and contribute to the property's value is its ______ life?
• What type of value typically does not include the value for the land?
• A community's long-range plan is called the what?
• Credible assignment results require support by relevant evidence and logic to the degree necessary for the ______.
• Rank the siding types from oldest to newest.
• A community's total employment is 58,240. The number of total core industry employees is 36,400. If the core industry adds 600 more jobs, how many additional jobs will be generated in the community?
• Equilibrium is achieved when ________________ for the product.
• The relationship between the supply and the demand for a site's particular highest and best use is a part of the analysis of which concept?
• An apartment building has rents of $800, $835, $850, $850, and $875 per month. What is the range of the rents?
• A highest and best use opinion must be developed ____________________________.
• A community's total employment is 77,700. The number of total core industry employees is 55,500. If the core industry adds 850 more jobs, how many additional jobs will be generated in the community?
• Which document is commonly filled out in a residential appraisal to summarize the analysis?
• Generally, which element changes more slowly in a real estate market?
• In market analysis, which metric gauges how quickly demand for a property type is absorbed by the market?
• When demand is higher than supply, the value of a product __________.
• What term best describes a market-focused analysis that studies supply and demand within a service area without focusing on a single site?
• In investment real estate, the Principle of Substitution says investors pursue the property feature that provides the highest what from a property?
• An Apartment building has rents of $800, $835, $850, $850, and $875 per month. What is the Mode of the rents?
• In the USPAP Scope of Work Rule, the identification of relevant characteristics is a judgment made by whom?
• A Mill Rate is equal to so much per ______________ of value.
• A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, is defined as which term?
• Indirect costs of construction Labor include all of the following EXCEPT ________________.
• Which is an example of the principle of regression?
• In the context of credible assignments, the purpose for which the assignment results are intended is called the ______.
• Which property would NOT be considered a special purpose property?
• Which economic concept refers to incidental effects on third parties not reflected in price?
• Which of the following describes variation in land characteristics across a market area?
• Value in Use is based on the property's current use.
• Most of the custom constructed high-value properties are built to exacting specifications for their owners. Therefore, the appraiser needs to analyze the _____________ of the high-value property.
• __________ windows are the standard in most parts of the country.
• When the land value is subtracted from the sales price, the __________ is identified.
• All of these are Governmental restrictions on land use EXCEPT __________.
• As part of data analysis, information relevant to the assignment will undergo which step before further testing and analysis?
• Which highest and best use criterion would require consideration of whether the site is in a flood zone?
• Supply _____________ demand.
• An Apartment building has rents of $800, $835, $850, $850, and $875 per month. What is the Mean of the rents?
• Which highest and best use criterion would require an appraiser to consider the soil composition of the site?
• Which term describes the landlord's interest in a leased property?
• Which form of ownership avoids right of survivorship among co-owners?
• Another name for a market segment is a ______________.
• Which type of system acts as both a heating system and air conditioning system?
• Which of the following best describes the term 'base core multiplier' in regional economic analysis?
• Part of the definition of Highest and Best Use is that is the '______________________ use....'
• The Consistent-Use Theory says the ______ must all be valued considering the same highest and best use of the property.
• A ________ ampere service is the minimum standard today for structures that do not have electric heat or central air conditioning.
• Which valuation type is commonly used for insurance purposes and often excludes land value?
• Deed restrictions are an example of __________ restrictions on land use.
• In a market area, there were 132 single-family sales last year, and there are currently 77 properties on the market. How long will it take to sell this existing inventory?
• Which metric is not used for site analysis according to the provided material?
• If supply exceeds demand, the market is in which condition?
• Wages are considered which type of construction cost?
• Going Concern Value refers to the value of a property based on its ability to continue operating as a business.
• What analysis process is commonly used by appraisers to study the supply and demand for a specific property type?
• The process of calculating the present value of future cash flows is known as discounting.
• Primary data are collected firsthand by whom?
• In a market area, there were 192 single-family sales last year, and there are currently 72 properties on the market. What is the monthly absorption rate?
• In analyzing the segmented market area, an appraiser might utilize all of these tools, EXCEPT for which?
• Which term involves subdividing the larger market into a workable study area?
• Which statement best describes the impact on prices when supply slightly exceeds demand?
• GLA stands for Gross Living Area.
• Inflationary conditions and the cost of money would be considered to be __ forces.
• Data that pertain to the subject and comparable properties and also describe individual property values are called __________ data.
• A single-family residence is located in a commercially-zoned area, where office space in the area sells for higher per square foot than residential space. What is the highest and best use of the property?
• A single family residence is situated on a 1 acre site, in an area where ½ acre sites are common. The home is in the center of the property, and it is not possible to subdivide off a ½ acre site. This is an example of _____________ land.
• Some investors require a higher rate of return because of a greater investment ____________________.
• The real estate market tends to be at which geographic level?
• Which of these would be considered general data?
• ________ Land is capable of a separate or alternative use.
• What term is used to describe the ratio of total community employment to core industry employment used to estimate community growth?
• Which principle quantifies rate and character of change in a market?
• What is the first step in the market analysis process according to the material?
• A market condition where supply and demand are in harmony is best described as a Balanced situation.
• The highest and best form of ownership in real estate is which?
• A community's total employment is 77,700. The number of total core industry employees is 55,500. For every 10 jobs added in the core industry, how many additional jobs will be generated in the community?
• Which criterion focuses on whether the proposed use is allowed by current zoning and statutes?
• The __________ equates to a rate of return for the initial investment.
• If the four agents of production are out of balance, a property is likely to be what?
• Which principle states that a buyer will not pay more for a property than the cost of acquiring a suitable substitute property?
• The _________ Standard is a standardized system for measuring residential properties.
• In highest and best use analysis, which factor reflects the link between supply and demand for the site’s use within feasibility analysis?
• Changes in the demand for differing housing styles or locations can cause which type of obsolescence?
• Fannie Mae will only purchase or securitize a mortgage that represents the highest and best use of the site as improved.
• Which two data types are used in market analysis?
• The value of a property as a real estate asset separate from its current business operations is known as?
• A property's value is directly related to the ______ for that type of property.
• For the final test of maximum productivity, uses must produce what?
• The two types of data that are used in market analysis are ______________.
• The difference between the highest sale price and the lowest sale price for those sales being analyzed is the ____________.
• A highest and best use opinion is developed when required for credible assignment results.
• In Highest and Best Use, the land is evaluated first as vacant and then as it is actually improved. What is the second state?
• In a housing cooperative, ownership is represented by which asset?
• Part of the definition of Highest and Best Use is that it is financially __________.
• The geographic region from which the majority of demand originates and where the majority of competition is located is called what?
• The structure's finished areas above grade are included in the GLA.
• Which term best describes a use that existed before a zoning change but is permitted to continue operation?
• _______________ analysis examines the present worth of a future benefit.
• Which of these designations would indicate that a property is in a Special Flood Hazard area?
• The appraiser uses _____________ data to identify trends in the marketplace.
• In appraisal concepts, which term refers to the usefulness or practicality of a property's feature?
• Data that describes a subject property and its comparables, focusing on property-specific values, is called ______ data.
• An acronym to help you remember the bundle of rights is __________.
• Another name for Sole Ownership is _________________.
• When evaluating custom high-value properties, what aspect should the appraiser analyze to reflect the owner's exacting standards?
• A change in population density in a market would be considered a(n) ______ force affecting values.
• Loan Value is usually a percentage of the _______________.
• Investment value is determined by the needs and desires of a(n) ______ investor.
• Which term describes the purchasing power used to evaluate affordability in real estate markets?
• Which property type is NOT typically classified as a Special Purpose property?
• ________________ are the most restrictive of the restrictions in place for the land's use.
• Which statement correctly contrasts a neighborhood and a district in terms of land use composition?
• The market value of a property is $300,000 and the loan-to-value ratio is 80%. What is the loan value for this property?
• Some of the more prominent economic principles and theories are __________.
• The purchaser's motivation to purchase the item in question to satisfy a need is called _____________.
• When appraising for market value, which concept must be determined as part of the Highest and Best Use analysis?
• Who will decide if the individual improvement is in conformance with the neighborhood or not?
• The term used for the most valuable use of a site after considering feasibility is which?
• In the GLA calculation example, which space is excluded from GLA because it is not accessible from the interior?
• _______________________ ownership is specifically for husband and wife.
• Which of the following best describes the concept of absorption in a real estate market?
• Which highest and best use criterion would require an appraiser to consider CC&Rs?
• The cost of foregoing one type of investment for another is the Principle of __________________.
• Part of the definition of Highest and Best Use is that it is 'Physically _______________...'
• The period during which a structure remains valuable to the property is its economic life. Which option list reflects this concept?
• Which criterion examines whether a site use is allowed given governing restrictions such as CC&Rs?
• In evaluating loan risk, lenders use the loan-to-value ratio to measure the loan amount as a percentage of what value?
• Which of these is NOT one of the ingredients of a Highest and best Use?
• There are two or more owners of a property and upon the passing of one of the owners, that owner's share passes to his or her heirs. This type of ownership is _____________________.
• A two-story home measures 28 feet by 48 feet on the exterior. There is an open two-story foyer area which measures 11 feet by 14 feet. What is GLA of this home?
• The middle number found by arranging the numerical data sequentially from highest to the lowest or vice-versa is the ______.
• Given rents of $800, $835, $850, $850, and $875 per month, what is the arithmetic mean?
• The term for the actual age of a property is which?
• In mortgage finance appraisals, the assignment normally involves an opinion of which value?
• Insurance value usually is based on _______________ cost.
• __________ Value identifies a tenant's interest in a lease.
• Rent controls and building codes are examples of ______________________ forces that affect value.
• A broad-based analysis involves the study of the supply and/or demand for a particular type of property or commodity within a particular service area or community. There is not a specific property or location involved in this type of analysis, which is called a ____________ Analysis.
• What term describes data readily available from public sources such as the local chamber of commerce, city hall, or the area public library?
• Which factors are the predominant forces that determine housing value in the marketplace?
• Part of the definition of Highest and Best Use is that it is the use that "results in the __________ value."
• The most frequently occurring number of the data being analyzed is the ______.
• A corporation or trust that pools capital of many investors to acquire or provide financing for all forms of real property is called a(n) __________________________.