National PSI Broker Exam Post Test
Questions with 100% Correct Answers
Latest Updates
In the appraisal process, the capitalization rate is used by an appraiser to determine
which type of value?
A)
Future value of any type of property
B)
Past value of a unique and income-producing property
C)
Present value of an income-producing property
D)
Probable value of residential property - Correct Answer-C)
The answer is present value of an income-producing property. The capitalization
formula uses current net operating income (NOI) to determine the present value of an
income-producing property.
If the current monthly GRM on a single-family home is 100 with an estimated annual
income of $24,000, what is the estimated value of the property?
A)
$120,000
B)
$200,000
C)
$240,000
D)
$2,400,000 - Correct Answer-B)
,The answer is $200,000. Monthly gross rent multiplier (GRM) × monthly income = value.
100 × 2,000 ($24,000 ÷ 12) = $200,000.
An appraiser is using the sales comparison approach to estimate the value of a
residential home. The appraiser will make positive and negative adjustments to the sold
comparables for all of the following factors EXCEPT
A)
square footage of the sold properties.
B)
lot size and location of each sold comparable in relation to the subject.
C)
,actual replacement and reproduction cost.
D)
date of sale of each sold comparable. - Correct Answer-C)
The answer is actual replacement and reproduction cost. Appraisers using the sales
comparison approach will adjust for square footage, lot size and location, and date of
sale in a rapidly changing market. Reproduction cost is used in the cost approach to
value, not the sales comparison approach.
The BEST approach for an appraiser trying to determine market value of a shopping
center, apartment building, or office building would be the
A)
replacement approach to value.
B)
income approach to value.
C)
sales comparison approach to value.
D)
summation approach to value. - Correct Answer-B)
The answer is income approach to value. The income approach is used when a
property, such as a shopping center, generates revenue.
An active real estate professional must be able to help consumers determine the
probable sales price of a real property. A broker's or salesperson's competitive market
analysis would be used for all of the following EXCEPT
A)
setting the loan value.
B)
determining the listing price.
C)
assisting sellers and buyers in determining market value.
D)
estimating the probable sales price. - Correct Answer-A)
The answer is setting the loan value. Appraisals, not competitive market analyses
(CMAs), are used to set or determine loan value. CMAs are often used to provide an
estimate of market value or a probable price. Appraisals also estimate market value.
An appraiser has been asked to determine the value of a church. The appraiser has
determined the best approach to value for this property is the cost approach. While
completing the process of determining the value, the appraiser will consider all of the
following EXCEPT
, A)
reproduction cost of the subject property.
B)
value of the land under the church.
C)
adjusted square footage of the subject and comparables.
D)
current depreciation of the property improvements. - Correct Answer-c)
The answer is adjusted square footage of the subject and comparables. An appraiser
using the cost approach does not make adjustments for square footage or any other
items
All of the following are true of FHA and VA loans EXCEPT
A)
there can be no prepayment penalty.
B)
the loan is assumable by a qualified buyer.
C)
the loan-to-value (LTV) ratio may typically be higher than that of conventional loans.
D)
an appraisal is not required. - Correct Answer-D)
The answer is an appraisal is not required. FHA and VA loans require no prepayment
penalty. The loans are assumable by qualified buyers, and the LTV ratio is usually
allowed to be higher than on conventional loans. Like all federal loans, an appraisal is
required for FHA and VA loans.
A state statute has set the maximum interest rate allowed on loans originated within the
state. This type of law is known as
A)
discount points.
B)
usury law.
C)
nominal interest rate.
D)
statute of limitations. - Correct Answer-b)
The answer is usury law. Discount points are paid to increase a lender's yield. The
nominal interest rate is the note rate without other charges. The statute of limitations set
the amount of time lawsuits can be filed.
Questions with 100% Correct Answers
Latest Updates
In the appraisal process, the capitalization rate is used by an appraiser to determine
which type of value?
A)
Future value of any type of property
B)
Past value of a unique and income-producing property
C)
Present value of an income-producing property
D)
Probable value of residential property - Correct Answer-C)
The answer is present value of an income-producing property. The capitalization
formula uses current net operating income (NOI) to determine the present value of an
income-producing property.
If the current monthly GRM on a single-family home is 100 with an estimated annual
income of $24,000, what is the estimated value of the property?
A)
$120,000
B)
$200,000
C)
$240,000
D)
$2,400,000 - Correct Answer-B)
,The answer is $200,000. Monthly gross rent multiplier (GRM) × monthly income = value.
100 × 2,000 ($24,000 ÷ 12) = $200,000.
An appraiser is using the sales comparison approach to estimate the value of a
residential home. The appraiser will make positive and negative adjustments to the sold
comparables for all of the following factors EXCEPT
A)
square footage of the sold properties.
B)
lot size and location of each sold comparable in relation to the subject.
C)
,actual replacement and reproduction cost.
D)
date of sale of each sold comparable. - Correct Answer-C)
The answer is actual replacement and reproduction cost. Appraisers using the sales
comparison approach will adjust for square footage, lot size and location, and date of
sale in a rapidly changing market. Reproduction cost is used in the cost approach to
value, not the sales comparison approach.
The BEST approach for an appraiser trying to determine market value of a shopping
center, apartment building, or office building would be the
A)
replacement approach to value.
B)
income approach to value.
C)
sales comparison approach to value.
D)
summation approach to value. - Correct Answer-B)
The answer is income approach to value. The income approach is used when a
property, such as a shopping center, generates revenue.
An active real estate professional must be able to help consumers determine the
probable sales price of a real property. A broker's or salesperson's competitive market
analysis would be used for all of the following EXCEPT
A)
setting the loan value.
B)
determining the listing price.
C)
assisting sellers and buyers in determining market value.
D)
estimating the probable sales price. - Correct Answer-A)
The answer is setting the loan value. Appraisals, not competitive market analyses
(CMAs), are used to set or determine loan value. CMAs are often used to provide an
estimate of market value or a probable price. Appraisals also estimate market value.
An appraiser has been asked to determine the value of a church. The appraiser has
determined the best approach to value for this property is the cost approach. While
completing the process of determining the value, the appraiser will consider all of the
following EXCEPT
, A)
reproduction cost of the subject property.
B)
value of the land under the church.
C)
adjusted square footage of the subject and comparables.
D)
current depreciation of the property improvements. - Correct Answer-c)
The answer is adjusted square footage of the subject and comparables. An appraiser
using the cost approach does not make adjustments for square footage or any other
items
All of the following are true of FHA and VA loans EXCEPT
A)
there can be no prepayment penalty.
B)
the loan is assumable by a qualified buyer.
C)
the loan-to-value (LTV) ratio may typically be higher than that of conventional loans.
D)
an appraisal is not required. - Correct Answer-D)
The answer is an appraisal is not required. FHA and VA loans require no prepayment
penalty. The loans are assumable by qualified buyers, and the LTV ratio is usually
allowed to be higher than on conventional loans. Like all federal loans, an appraisal is
required for FHA and VA loans.
A state statute has set the maximum interest rate allowed on loans originated within the
state. This type of law is known as
A)
discount points.
B)
usury law.
C)
nominal interest rate.
D)
statute of limitations. - Correct Answer-b)
The answer is usury law. Discount points are paid to increase a lender's yield. The
nominal interest rate is the note rate without other charges. The statute of limitations set
the amount of time lawsuits can be filed.
