Appraisal book 2 7-

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Appraisal book 2 7-
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2013-01-17 03:57:35
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Appraisal book 2 7-
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  1. The tenant's interest in the leased property during the term of the lease
    A. estate
    B. fee simple estate
    C. leasehold estate
    D. life estate
    C. leasehold estate
    (this multiple choice question has been scrambled)
  2. An estate that is limited in duration to the life of its owner or the life of another designated person
    A. leasehold estate
    B. estate
    C. fee simple estate
    D. life estate
    D. life estate
    (this multiple choice question has been scrambled)
  3. A sale in which the financing does not affect the price
    A. cash equivalent sale
    B.paired sale analysis
    C. paired sale analysis
    D. cash equivalency technique
    A. cash equivalent sale
    (this multiple choice question has been scrambled)
  4. A procedure in which the sales prices of comparable properties selling with atypical financing are adjusted to reflect financing that is typical in a market
    A. adjustment grid
    B. contingent valuation methodology
    C. correlation
    D. cash equivalency technique
    D. cash equivalency technique
    (this multiple choice question has been scrambled)
  5. Compares data on properties to obtain results that are then applied to other properties in the same market
    A. ranking analysis
    B. qualitative analysis
    C. paired sale analysis
    D. quantitative analysis
    D. quantitative analysis
    (this multiple choice question has been scrambled)
  6. Compares data on properties to obtain relative comparisons between properties in the same market
    A. ranking analysis
    B. qualitative analysis
    C. quantitative analysis
    D. paired sale analysis
    B. qualitative analysis
    (this multiple choice question has been scrambled)
  7. A dollar or percentage amount that is added to or subtracted from the sale price of a comparable property
    A. sale-resale analysis
    B. adjustment grid
    C. correlation
    D. adjustment
    D. adjustment
    (this multiple choice question has been scrambled)
  8. In performing the sales comparison analysis, the subject and the comparable sales are usually entered onto this
    A. adjustment grid
    B. ranking analysis
    C. paired sale analysis
    D. adjustment
    A. adjustment grid
    (this multiple choice question has been scrambled)
  9. A method of estimating the amount of adjustment for the presence or absence of any feature by pairing the sales prices of otherwise identical properties with and without that feature
    paired sales analysis
  10. A method for determining adjustment or depreciation amounts that is useful when a property is sold and resold in a relatively short period
    A. paired sale analysis
    B. adjustment grid
    C. sale-resale analysis
    D. ranking analysis
    C. sale-resale analysis
    (this multiple choice question has been scrambled)
  11. Occurs when a person buys a property at one price and quickly sells it to another at an inflated price, usually within a short period
    flipping
  12. A relationship among variables that is demonstrated when an observed change in the value of one variable is related to a corresponding change in the value of another variable
    A. multiple regression analysis
    B. contingent valuation methodology
    C. flipping
    D. correlation
    D. correlation
    (this multiple choice question has been scrambled)
  13. A statistical technique for estimating a particular variable, such as probable sales price, using more than one other known variable
    A. multiple regression analysis
    B. contingent valuation methodology
    C. cash equivalency technique
    D. adjustment grid
    A. multiple regression analysis
    (this multiple choice question has been scrambled)
  14. The selection of market data so that the subject is contained within a range of data
    bracketing
  15. A method used to identify how a particular feature affects the value of a property by asking those who are knowledgeable about that market
    A. correlation
    B. cash equivalency technique
    C. adjustment grid
    D. contingent valuation methodology
    D. contingent valuation methodology
    (this multiple choice question has been scrambled)
  16. A homogeneous property is one that is ____ to the subject property
    A. inferior
    B. similar
    C. superior
    d. all of the above
    B. similar
    (this multiple choice question has been scrambled)
  17. While researching comparable properties, Gary finds an identical comp in the same tract of homes. He notes that as part of the sales agreement, the seller partially financed the sale. Gary should
    A. use the comparable with no further action
    B. not use the comparable because it has atypical financing
    C. apply a cash equivalency formula to the subject to adjust for the atypical financing
    D. apply a cash equivalency technique to the comparable to adjust for the atypical financing
    D. apply a cash equivalency technique to the comparable to adjust for the atypical financing
    (this multiple choice question has been scrambled)
  18. Location adjustments may be based on
    a. changes in highest and best use
    b. proximity to negative factors such as highways
    c. dissimilarity in natural amenities
    d. all of the above
    d. all of the above
  19. A cmoparable house sold nine months ago for $376,000. The appraiser concludes that property value have increased by 5% per year. The adjustment is
    A. $13,750
    B. $19,736
    C. $18,675
    D. $14,100
    D. $14,100
    (this multiple choice question has been scrambled)
  20. In the sales comparison approach, the appraiser uses quantitative and/or qualitative analysis to derive an opinion of value. The two techniques
    A. can be used separately or in combination
    B. must always be used separately
    C. should be combined for the best results
    D. should only be combined if sufficient information is not available
    A. can be used separately or in combination
    (this multiple choice question has been scrambled)
  21. Adjustments are made
    a. as a dollar amount only
    b. as a percentage of the sales price
    c. using pluses or minuses
    d. all of the above
    d. all of the above
  22. The sequence in which adjustments are made is unimportant if the adjustments are made
    A. on a percentage basis alone
    B. on a case-by-case basis
    C. in combination with dollar adjustments
    D. strictly on a dollar basis
    D. strictly on a dollar basis
    (this multiple choice question has been scrambled)
  23. Kate located a comparable that recently sold for 450,000 that needed several adjustments: a 10,000 adjustment for a remodeled kitchen, a 5% downward adjustment for market conditions, and 3% for seller assisted financing. What is the adjusted value of the comparable?
    A. 463,175
    B. 475,000
    C. 449,000
    D. 468,300
    D. 468,300
    (this multiple choice question has been scrambled)

  24. What is the adjustment value for a pool in this neighborhood?
    A. $25,000
    B. $10,000
    C. $35,000
    D. $20,000
    C. $35,000
    (this multiple choice question has been scrambled)
  25. What is the adjustment value for an extra garage space in th is neighborhood?
    A. $15,000
    B. $10,000
    C. $25,000
    D. $5,000
    B. $10,000
    (this multiple choice question has been scrambled)
  26. According to the adjustment grid on the previous page, what is the indicated value of the subject property?
    A. $400,000
    B. $432,000
    C. $425,000
    D. $415,000
    C. $425,000
    (this multiple choice question has been scrambled)
  27. Gayle purchased her home in the spring of 2006 for $225,000. She sold it 12 months later for $245,000. Using the sale resale analysis, what is the annual rate of at which this market is increasing?
    A. 20%
    B. 15%
    C. 3%
    D. 9%
    D. 9%
    (this multiple choice question has been scrambled)
  28. Linear regression is often used by appraisers to determine how one or more independent variables affect a dependent variable. Regression is a statistical analysis
    A. determining the correlation of the estimates of value
    B. measuring the decline in value of the subject property
    C. assessing the association between two variables
    D. used only for the valuation of non-realty components
    C. assessing the association between two variables
    (this multiple choice question has been scrambled)
  29. What is the primary limitation associated with using multiple regression analysis?
    A. it can only be used in areas where no two properties are alike
    B. all sales in an area are usually factored into the analysis, not just the sales that are comparable to the subject
    C. it cannot be performed quickly
    D. items having an effect on value such condition or view cannot be estimated
    B. all sales in an area are usually factored into the analysis, not just the sales that are comparable to the subject
    (this multiple choice question has been scrambled)
  30. A sale in which the financing does not affect the sales price
    A. cash equivalent sale
    B. straight note
    C. installment sales contract
    D. discount point
    A. cash equivalent sale
    (this multiple choice question has been scrambled)
  31. The nation's central bank, whose job it is to regulate the flow of money and credit to promote economic growth with stability
    A. Federal National Mortgage Association (FNMA)
    B. Federal Home Loan Mortgage Corporation (FHLMC)
    C. Government National Mortgage Association (GNMA)
    D. The Federal Reserve Bank System (the Fed)
    D. The Federal Reserve Bank System (the Fed)
    (this multiple choice question has been scrambled)
  32. The interest rate that is charged by the Federal Reserve Bank to its member banks for loans
    A. conventional loan
    B. discount rate
    C. discount point
    D. amortized loan
    B. discount rate
    (this multiple choice question has been scrambled)
  33. The market in which lenders make mortgage loans by lending directly to borrowers
    A. conventional loan
    B. secondary mortgage market
    C. amortized loan
    D. primary mortgage market
    D. primary mortgage market
    (this multiple choice question has been scrambled)
  34. The act of supervising and administering a loan after it has been made
    A. amortized loan
    B. servicing loan
    C. wraparound loan
    D. servicing loan
    D. servicing loan
    (this multiple choice question has been scrambled)
  35. A lender with an obligation to protect and preserve its depositors' funds
    A. direct lender
    B. federal lender
    C. fiduciary lender
    D. home equity line of credit (HELOC)
    C. fiduciary lender
    (this multiple choice question has been scrambled)
  36. A lender that lends its own funds and handles the entire loan process from origination to funding
    A. federal lender
    B. direct lender
    C. home equity line of credit (HELOC)
    D. fiduciary lender
    B. direct lender
    (this multiple choice question has been scrambled)
  37. The market that involves the buying and selling of existing mortgage loans from the primary mortgage market or from each other
    A. amortized loan
    B. servicing loan
    C. conventional loan
    D. wraparound loan
    B. servicing loan
    (this multiple choice question has been scrambled)
  38. The process of assembling into one package a number of mortgage loans, prior to selling them to an investor
    A. warehousing
    B. straight note
    C. assemblage
    D. home equity line of credit (HELOC)
    A. warehousing
    (this multiple choice question has been scrambled)
  39. A government sponsored, shareholder-owned company that works in the secondary mortgage market to make sure mortgage money is available for people in communities all across America.
    A. The Federal Reserve Bank System (the Fed)
    B. Federal Housing Administration (FHA)
    C. Federal Home Loan Mortgage Corporation (FHLMC)
    D. Federal National Mortgage Corporation (FHLMC)
    D. Federal National Mortgage Corporation (FHLMC)
    (this multiple choice question has been scrambled)
  40. A government agency created as a wholly-owned corporation within the Department of Housing and Urban Development (HUD) that serves low to moderate-income homebuyers
    A. Federal Home Loan Mortgage Corporation (FHLMC)
    B. Federal Housing Administration (FHA)
    C. Government National Mortgage Association (GNMA)
    D. The Federal Reserve Bank System (the Fed)
    C. Government National Mortgage Association (GNMA)
    (this multiple choice question has been scrambled)
  41. A government-sponsored, shareholder-owned (NYSE, FRE) company whose mission is to provide liquidity, stability and affordability to the housing market
    A. Federal Home Loan Mortgage Corporation (FHLMC)
    B. Federal National Mortgage Association (FNMA)
    C. Federal Housing Administration (FHA)
    D. The Federal Reserve Bank System (the Fed)
    C. Federal Housing Administration (FHA)
    (this multiple choice question has been scrambled)
  42. A promissory note in which payments of interest only are made periodically during the term of the note, with the principal payment due in one lump sum upon maturity
    A. prepayment clause
    B. straight note
    C. installment sales contract
    D. home equity line of credit (HELOC)
    B. straight note
    (this multiple choice question has been scrambled)
  43. A type of loan consisting of regular, periodic payments of both interest and principal, which pay off the debt completely by the end of the term
    A. installment sales contract
    B. discount rate
    C. fixed-rate amortized mortgage
    D. home equity line of credit (HELOC)
    C. fixed-rate amortized mortgage
    (this multiple choice question has been scrambled)
  44. A type of loan with an interest rate that adjusts to a movable economic index
    A. fixed-rate amortized mortgage
    B. installment sales contract
    C. Reverse annuity mortgage
    D. adjustable-rate mortgage (ARM)
    D. adjustable-rate mortgage (ARM)
    (this multiple choice question has been scrambled)
  45. A type of loan that uses its built-up equity to pay the borrower a fixed annuity, based on a percentage of the property value
    A. fixed-rate amortized mortgage
    B. installment sales contract
    C. adjustable-rate mortgage (ARM)
    D. reverse annuity mortgage
    D. reverse annuity mortgage
    (this multiple choice question has been scrambled)
  46. A real estate financing instrument in which the buyer agrees to purchase the property, but the seller keeps the title until certain conditions are met
    A. warehousing
    B. home equity line of credit (HELOC)
    C. adjustable-rate mortgage (ARM)
    D. installment sales contract
    D. installment sales contract
    (this multiple choice question has been scrambled)
  47. A type of loan that wraps an existing loan with a new loan, and the borrower makes one payment for both
    A. conventional loan
    B. wraparound loan
    C. amortized loan
    D. servicing loan
    B. wraparound loan
    (this multiple choice question has been scrambled)
  48. A type of second lien that taps into a property owner's equity and creates a revolving credit line
    A. adjustable-rate mortgage (ARM)
    B. primary mortgage market
    C. home equity line of credit (HELOC)
    D. secondary mortgage market
    C. home equity line of credit (HELOC)
    (this multiple choice question has been scrambled)
  49. Mortgage guarantee insurance required by conventional lenders on the first part of a high risk loan
    A. private mortgage insurance (PMI)
    B. acceleration caluse
    C. secondary mortgage insurance (SMI)
    D. installment sales contract
    A. private mortgage insurance (PMI)
    (this multiple choice question has been scrambled)
  50. The Federal Reserve Bank System (the Fed) indirectly manipulates the flow of money by
    A. controlling the reserve requirements and discount rates
    B. allowing banks to set their own reserve requirements
    C. offering loans directly to consumers
    D. selling mortgage-backed securities to the public
    A. controlling the reserve requirements and discount rates
    (this multiple choice question has been scrambled)
  51. Lenders make their income from
    a. origination fees
    b. interest payments from loan
    c. service fees
    d. all of the above
    d. all of the above
  52. Pat recently received his appraiser's license. After deciding on a marketing budget, Pay makes a list of potential clients. Who are Pat's potential clients?
    a. Savings and loan institutions
    b. mortgage brokers
    c. Commercial banks
    d. all of the above
    d. all of the above
  53. Mortgage banking companies originate mortgage loans that can come from their own funds. This is an example of a
    A. mortgage broker
    B. direct lender
    C. mortgage servicer
    D. credit union
    B. direct lender
    (this multiple choice question has been scrambled)
  54. One of the functions of the Federal National Mortgage Association (FNMA), otherwise known as Fannie Mae, includes:
    A. determining interest rates for the primary mortgage market
    B. determining reserve requirements for banks
    C. manipulating the flow of money in the economy
    D. developing appraisal guidelines
    D. developing appraisal guidelines
    (this multiple choice question has been scrambled)
  55. Tom, a mortgage broker, asks Sally if she could appraise a property for a client. Sally willingly accepts the assignment and travels to the property. Upon arrival, she notices the home has unusual features. In order to comply with Fannie Mae's appraisal guidelines for this property's unique features, she should refer to
    A. chapter 2-appraisal documentation and certifications
    B. chapter 4-reviewing the appraisal report
    C. chapter 3-special appraisal considerations
    D. chapter 1-appraiser qualifications
    C. chapter 3-special appraisal considerations
    (this multiple choice question has been scrambled)
  56. Which of the following is not a function of Freddie Mac?
    A. investing in home mortgages
    B. helping homeowners and renters with low housing costs
    C. guaranteeing the payments of purchased loans
    D. providing increased access to home financing
    C. guaranteeing the payments of purchased loans
    (this multiple choice question has been scrambled)
  57. And _____ is the most common type of loan with institutional lenders
    A. fully-amortized note
    B. fixed-rate mortgage
    C. adjustable-rate mortgage
    D. interest-only loan
    A. fully-amortized note
    (this multiple choice question has been scrambled)
  58. Fred is currently exploring different financing options. After doing some initial research, he prefers a fully -amortized loan that will provide regular payments that cover interest as well as principal for the life of the loan. He wants the lowest payment possible so a 40-year term is not out of the question. What type of loan should Fred seek?
    A. adjustable-rate mortgage (ARM)
    B. interest-only mortgage
    C. fixed-rate mortgage (FRM)
    D. reverse annuity mortgage
    C. fixed-rate mortgage (FRM)
    (this multiple choice question has been scrambled)
  59. `Which of the following is used to help figure out the adjusted rate in an ARM?
    A. both any economic index and LIBOR
    B. LABOR
    C. LIBOR
    D. any economic index
    A. both any economic index and LIBOR
    (this multiple choice question has been scrambled)
  60. Ted is quickly reaching retirement age and needs a way to supplement his social security income to fund his hobbies. He has owned his property for 25 years so he has a lot of equity in his home. What type of mortgage would be ideal for Ted?
    A. seller carry-back financing
    B. adjustable-rate mortgage (ARM)
    C. interest-only mortgage
    D. reverse annuity mortgage
    D. reverse annuity mortgage
    (this multiple choice question has been scrambled)
  61. Pam is planning to remodel her kitchen. She receives bids ranging from $40,000-$50,000 for the project. Which of the following if often used for home improvements?
    A. seller carry-back financing
    B. credit card
    C. home equity line of credit (HELOC)
    D. reverse annuity mortgage
    C. home equity line of credit (HELOC)
    (this multiple choice question has been scrambled)
  62. A(n) ____ clause gives the lender the right to call the loan due and demand repayment immediately on occurrence of a specific event
    A. grandfather
    B. estate
    C. acceleration
    D. lien
    C. acceleration
    (this multiple choice question has been scrambled)
  63. John's loan has an LTV of 80%. The loan amount is $330,000. What ist he purchase price of John's property?
    A. $366,000
    B. $408,600
    C. $412,500
    D. $660,000
    C. $412,500
    (this multiple choice question has been scrambled)
  64. A jumbo loan is a type of ____ loan
    A. conforming
    B. government-sponsored
    C. subprime
    D. non-conforming
    D. non-conforming
    (this multiple choice question has been scrambled)
  65. Appraisal method that estimates the present worth of future benefits from ownership of a property to determine that property's value
    A. income approach
    B. reconstructed operating statement
    C. contract rent
    D. capital
    A. income approach
    (this multiple choice question has been scrambled)
  66. Estimated period over which a building may be profitably used
    A. economic life
    B. economic cycle
    C. economic rent
    D. fiscal year
    A. economic life
    (this multiple choice question has been scrambled)
  67. Property owner's interest in the leased property
    A. estate
    B. leasehold estate
    C. leased fee estate
    D. fee simple estate
    C. leased fee estate
    (this multiple choice question has been scrambled)
  68. Tenant's interest in the leased property during the term of the lease
    A. estate
    B. fee simple estate
    C. real estate
    D. leasehold estate
    D. leasehold estate
    (this multiple choice question has been scrambled)
  69. Tenant pays a fixed amount of rent, and the owner pays all the expenses of ownership
    A. net operating lease
    B. contract rent
    C. operating statement
    D. gross lease
    D. gross lease
    (this multiple choice question has been scrambled)
  70. A property's total potential income from all sources during a specified period
    A. potential gross income (PGI)
    B. replacement reserves
    C. income approach
    D. capital
    A. potential gross income (PGI)
    (this multiple choice question has been scrambled)
  71. Amount of rent being paid under contractual terms binding owners and tenants
    A. vacancy loss
    B. gross lease
    C. contract rent
    D. collection loss
    C. contract rent
    (this multiple choice question has been scrambled)
  72. What a leased property would be expected to rent for under current market conditions if the property were vacant and available for rent
    A. economic rent
    B. contract rent
    C. fixed expenses
    D. vacancy loss
    A. economic rent
    (this multiple choice question has been scrambled)
  73. Amount of income that remains after vacancy and collection losses are deducted from gross income
    A. net operating income (NOI)
    B. potential gross income (PGI)
    C. effective gross income (EGI)
    D. gross operating income (GOI)
    C. effective gross income (EGI)
    (this multiple choice question has been scrambled)
  74. Loss of potential income because of a vacant unit
    A. modified gross lease
    B. vacancy loss
    C. replacement reserves
    D. collection loss
    B. vacancy loss
    (this multiple choice question has been scrambled)
  75. Loss incurred if tenants do not pay their agreed-upon rents
    A. replacement reserves
    B. collection loss
    C. vacancy loss
    D. modified gross lease
    B. collection loss
    (this multiple choice question has been scrambled)
  76. Income remaining after the operating expenses are deducted from the effective gross income
    A. net operating income (NOI)
    B. gross operatin income (GOI) 
    C. potential gross income (PGI)
    D. effective gross income (EGI)
    A. net operating income (NOI)
    (this multiple choice question has been scrambled)
  77. Expenses necessary to maintain the property and to help ensure the continued production of income
    A. economic rent
    B. economic life
    C. operating expenses
    D. administration expense
    C. operating expenses
    (this multiple choice question has been scrambled)
  78. Operating costs that vary little from year to year regardless of occupancy
    A. variable expenses
    B. administration expense
    C. operating expenses
    D. fixed expenses
    D. fixed expenses
    (this multiple choice question has been scrambled)
  79. Operating expenses that vary with occupancy level or intensity of use of a property
    A. operating expenses
    B. variable expenses
    C. modified gross lease
    D. fixed expenses
    B. variable expenses
    (this multiple choice question has been scrambled)
  80. Funds set aside by the property owner to pay for the replacement of certain building components and fixtures that periodically wear out in a property
    A. collection loss
    B. replacement reserves
    C. contract rent
    D. reconstructed operating statement
    B. replacement reserves
    (this multiple choice question has been scrambled)
  81. Any permanent improvement made to real estate for the purpose of increasing teh useful life of the property or increasing the property's value
    A. capital
    B. economic life
    C. capital improvements
    D. replacement reserves
    C. capital improvements
    (this multiple choice question has been scrambled)
  82. An accounting concept, which refers to an allowance taken to provide for recovery of invested capital
    A. reconstructed operating statement
    B. book depreciation
    C. capital improvements
    D. rental survey
    B. book depreciation
    (this multiple choice question has been scrambled)
  83. Eliminates the inapplicable expense items for appraisal purposes and adjusts the remaining valid expenses, if necessary
    A. reconstructed operating statement
    B. replacement reserves
    C. administration expense
    D. modified gross lease
    A. reconstructed operating statement
    (this multiple choice question has been scrambled)
  84. A written record of a property's gross income, expenses, and resultant net income for a given period
    A. rental survey
    B. reconstructed operating stateemnt
    C. operating statement
    D. modified gross lease
    C. operating statement
    (this multiple choice question has been scrambled)
  85. The income approach is applicable to property in which
    A. current benefits are measured by the expected potential income to the owner
    B. future benefits are measured by the expected gross income to the owner
    C. past benefits are measured by the expected gross income to the owner
    D. future benefits are measured by the expected net income to the owner
    D. future benefits are measured by the expected net income to the owner
    (this multiple choice question has been scrambled)
  86. An appraiser uses seven basic steps with the income approach. Which of the following is the first step?
    A. estimating the potential gross income (PGI)
    B. estimating an allowance for vacancy and collection loss
    C. estimating operating expenses
    D. estimating effective gross income (EGI)
    A. estimating the potential gross income (PGI)
    (this multiple choice question has been scrambled)
  87. Most appraisals ofleased properties are of which type of estate?
    A. less-than-freehold
    B. fee simple
    C. leased fee
    D. leasehold
    C. leased fee
    (this multiple choice question has been scrambled)
  88. If a tenant and landlord share expenses in accordance to the provisions of the lease, it become a(n) ____ lease.
    A. double net
    B. absolute net
    C. modified gross
    D. gross
    C. modified gross
    (this multiple choice question has been scrambled)
  89. In a triple net lease (NNN), the tenant pays for
    a. utilities
    b. taxes
    c. insurance
    d. all the above
    d. all the above
  90. In considering potential gross income for appraisal purposes, which of the followed is used?
    A. service rent
    B. economic tent
    C. effective tent
    D. contract rent
    B. economic tent
    (this multiple choice question has been scrambled)
  91. Income derived from laundry facilities, vending machines, and selling of utility service is known as ____ income
    A. service
    B. rental
    C. administrative
    D. gross
    A. service
    (this multiple choice question has been scrambled)
  92. For appraisal purposes, when contract rent exceeds economic rent, the appraiser should capitalize
    A. excess rent at a higher rate
    B. the economic rent at normal rates, and excess rent at a higher rate
    C. the economic rent at normal rates
    D. the contract rent at a higher rate
    B. the economic rent at normal rates, and excess rent at a higher rate
    (this multiple choice question has been scrambled)
  93. A rental survey is an analysis of which of the following?
    A. operating expenses
    B. rent schedule
    C. rental history
    D. competitive rent
    D. competitive rent
    (this multiple choice question has been scrambled)
  94. Effective gross income (EGI) is determined by
    A. adding a vacancy rate to the gross income
    B. adding operating expenses to the gross income
    C. deducting contract rent from economic rent
    D. deducting vacancy and collection loss from the gross income
    D. deducting vacancy and collection loss from the gross income
    (this multiple choice question has been scrambled)
  95. The vacancy and collection loss allowance is based on
    A. the date of appraisal
    B. an extended time
    C. the existing contract rent
    d. all of the above
    B. an extended time
    (this multiple choice question has been scrambled)
  96. Net operating income (NOI) is determined by
    A. deducting operating expenses from potential gross income (PGI)
    B. deducting operating expenses from effective gross income (EGI)
    C. adding vacancy and/or collection losses to potential gross income (PGI)
    D. adding operating expenses to gross income
    B. deducting operating expenses from effective gross income (EGI)
    (this multiple choice question has been scrambled)
  97. Property taxes fall into which of the following expense categories
    A. fixed expenses
    B. variable expenses
    C. reserves for replacement
    D. administrative expenses
    A. fixed expenses
    (this multiple choice question has been scrambled)
  98. Replacement reserves, as an expense item, affect which of the following
    a. components that are an integral part of the building
    b. personal property normally included in the sale and lease of the real property
    c. furniture and appliances
    d. all of the above
    d. all of the above
  99. An owner's operating statement usually differs from the appraiser's net income estimate in which of the following ways?
    A. the owner's statement does not allow for reservces for replacement
    B. the owner's statement does not allow for vacancy and collection losses
    C. the owner's statement does not consider actual recurring expenses
    D. both the owner's statement does not allow for vacancy and collection losses and the owner's statement does not allow for reservces for replacement
    D. both the owner's statement does not allow for vacancy and collection losses and the owner's statement does not allow for reservces for replacement
    (this multiple choice question has been scrambled)

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