RESIDENTIAL SALES COMPARISON UPDATED
COMPREHENSIVE EXAM QUESTIONS AND SOLUTIONS
GUARANTEE A+
✔✔The principles of progression and regression are illustrations of what happens when
the principle of ______________ is violated.
Conformity
Balance
Change
Substitution - ✔✔Balance
✔✔"The principle that real property value is created and sustained when contrasting,
opposing, or interacting elements are in a state of equilibrium" is the definition of the
principle of
Anticipation
Supply and Demand
Change
Balance - ✔✔Balance
✔✔Of the three appraisal approaches, the Sales Comparison Approach relies most
heavily on the economic principle of
Mathematics
Substitution
Equalization
Fairness - ✔✔Substitution
✔✔"The result of the cause and effect relationship among the forces that influence real
property value" is the definition of the principle of
Anticipation
Supply and Demand
Change
Balance - ✔✔Change
✔✔When is the Sales Comparison Approach NOT the best way to estimate value?
When there are many similar properties nearby
When the market is very strong
When the property is highly unusual
When the property is in a subdivision - ✔✔When the property is highly unusual
,✔✔Comparative analysis may employ quantitative analysis and qualitative analysis
Separately only
Together only
Separately or together
Only in the appraisal of non-residential properties - ✔✔Separately or together
✔✔Qualitative analysis is used for elements that
Defy description
Are too far apart
Can't be ranked
Cannot be given a numerical value - ✔✔Cannot be given a numerical value
✔✔The process by which a value indication is derived in the Sales Comparison
Approach is called
Comparative analysis
Quantitative analysis
Qualitative analysis
Highest and best use analysis - ✔✔Comparative analysis
✔✔Syndications are:
Private partnerships only
Public partnerships only
Either private or public partnerships
Corporations - ✔✔Either Private or Public Partnerships.
✔✔Which type of ownership includes a right of survivorship?
Joint tenancy only
Tenancy in common only
Tenancy in common and joint tenancy
Joint tenancy and tenancy by the entirety - ✔✔Joint tenancy and tenancy by the entirety
✔✔Which of the following are NOT classified as negative easements?
Conservation easements
Drainage easements
Historic preservation easements
Transferable Development Rights - ✔✔Transferable Development rights
✔✔"Trespassing on the domain of another" is the definition of
,Adverse possession
Easement
Encroachment
Conservation easement - ✔✔Encroachment
✔✔"The order in which quantitative adjustments are applied to the sale prices of
comparable properties" is the definition of
Ranking
Ordinal analysis
Sales grid
Sequence of adjustments - ✔✔Sequence of adjustments
✔✔Stanley gives his mother, Pearl, a life estate to occupy Stanley's home as long as
Pearl's sister Myrtle remains alive, after which possession of the property will revert
back to Stanley. Who is the remainderman in this situation?
Stanley
Pearl
Myrtle
There is no remainderman - ✔✔Stanley
✔✔An estate in severalty involves ____________ owner(s).
Only one
More than one
At least two
Corporate - ✔✔Only one
✔✔"An organization that acts as a single legal entity in performing certain activities,
usually business for profit; also includes charitable, educational, and religious
organizations" is the definition of
Corporation
Cooperative
Syndicate
Partnership - ✔✔Corporation
✔✔An estate that is restricted to husband and wife only is called
Joint tenancy
Tenancy in severalty
Tenancy by the entirety
Tenancy in common - ✔✔Tenancy by the entirety
, ✔✔The sequence of adjustments is determined by the _______ and through analysis of
the _______.
Lender, data
Appraiser, problem
Market, data
Market, situation - ✔✔Market,Data
✔✔Conventional mortgages are defined as: - ✔✔"Mortgages that are neither insured
nor guaranteed by an agency of the government, although they may be privately
insured."
✔✔Guaranteed mortgages - ✔✔A mortgage in which a party other than the borrower
assures payment in the event of default, e.g., a VA-guaranteed mortgage.
✔✔Insured mortgages: - ✔✔A mortgage in which a party other than the borrower
assures payment on default by the mortgagor in return for the payment of a premium,
e.g., FHA-insured mortgages, private mortgage insurance (PMI)."
✔✔First mortgage: - ✔✔A mortgage that has priority over all other mortgage liens on a
property."
✔✔Junior liens: - ✔✔A lien placed on a property after a previous lien has been made
and recorded; a lien made subordinate to another by agreement; e.g., second and third
mortgages; also called second lien or third lien."
✔✔Amortization is defined as - ✔✔"The process of retiring a debt or recovering a
capital investment, typically through scheduled, systematic repayment of the principal."
✔✔Fixed rate mortgage - ✔✔A conventional mortgage with an interest rate that does
not vary over the life of the loan."
✔✔A Balloon Mortgage is defined as: - ✔✔"A mortgage that is not fully amortized at
maturity and requires a lump sum, or balloon, payment of the outstanding balance"
✔✔Graduated payment mortgage: - ✔✔"A debt secured by real estate in which
mortgage payments are matched to projected increases in the borrower's income. The
periodic payments start out low and gradually increase."
✔✔Adjustable Rate Mortgages (ARMs) are defined as: - ✔✔"A debt secured by real
estate with an interest rate that may move up or down following a specified schedule or
in accordance with the movements of a standard or index to which the interest rate is
tied."
COMPREHENSIVE EXAM QUESTIONS AND SOLUTIONS
GUARANTEE A+
✔✔The principles of progression and regression are illustrations of what happens when
the principle of ______________ is violated.
Conformity
Balance
Change
Substitution - ✔✔Balance
✔✔"The principle that real property value is created and sustained when contrasting,
opposing, or interacting elements are in a state of equilibrium" is the definition of the
principle of
Anticipation
Supply and Demand
Change
Balance - ✔✔Balance
✔✔Of the three appraisal approaches, the Sales Comparison Approach relies most
heavily on the economic principle of
Mathematics
Substitution
Equalization
Fairness - ✔✔Substitution
✔✔"The result of the cause and effect relationship among the forces that influence real
property value" is the definition of the principle of
Anticipation
Supply and Demand
Change
Balance - ✔✔Change
✔✔When is the Sales Comparison Approach NOT the best way to estimate value?
When there are many similar properties nearby
When the market is very strong
When the property is highly unusual
When the property is in a subdivision - ✔✔When the property is highly unusual
,✔✔Comparative analysis may employ quantitative analysis and qualitative analysis
Separately only
Together only
Separately or together
Only in the appraisal of non-residential properties - ✔✔Separately or together
✔✔Qualitative analysis is used for elements that
Defy description
Are too far apart
Can't be ranked
Cannot be given a numerical value - ✔✔Cannot be given a numerical value
✔✔The process by which a value indication is derived in the Sales Comparison
Approach is called
Comparative analysis
Quantitative analysis
Qualitative analysis
Highest and best use analysis - ✔✔Comparative analysis
✔✔Syndications are:
Private partnerships only
Public partnerships only
Either private or public partnerships
Corporations - ✔✔Either Private or Public Partnerships.
✔✔Which type of ownership includes a right of survivorship?
Joint tenancy only
Tenancy in common only
Tenancy in common and joint tenancy
Joint tenancy and tenancy by the entirety - ✔✔Joint tenancy and tenancy by the entirety
✔✔Which of the following are NOT classified as negative easements?
Conservation easements
Drainage easements
Historic preservation easements
Transferable Development Rights - ✔✔Transferable Development rights
✔✔"Trespassing on the domain of another" is the definition of
,Adverse possession
Easement
Encroachment
Conservation easement - ✔✔Encroachment
✔✔"The order in which quantitative adjustments are applied to the sale prices of
comparable properties" is the definition of
Ranking
Ordinal analysis
Sales grid
Sequence of adjustments - ✔✔Sequence of adjustments
✔✔Stanley gives his mother, Pearl, a life estate to occupy Stanley's home as long as
Pearl's sister Myrtle remains alive, after which possession of the property will revert
back to Stanley. Who is the remainderman in this situation?
Stanley
Pearl
Myrtle
There is no remainderman - ✔✔Stanley
✔✔An estate in severalty involves ____________ owner(s).
Only one
More than one
At least two
Corporate - ✔✔Only one
✔✔"An organization that acts as a single legal entity in performing certain activities,
usually business for profit; also includes charitable, educational, and religious
organizations" is the definition of
Corporation
Cooperative
Syndicate
Partnership - ✔✔Corporation
✔✔An estate that is restricted to husband and wife only is called
Joint tenancy
Tenancy in severalty
Tenancy by the entirety
Tenancy in common - ✔✔Tenancy by the entirety
, ✔✔The sequence of adjustments is determined by the _______ and through analysis of
the _______.
Lender, data
Appraiser, problem
Market, data
Market, situation - ✔✔Market,Data
✔✔Conventional mortgages are defined as: - ✔✔"Mortgages that are neither insured
nor guaranteed by an agency of the government, although they may be privately
insured."
✔✔Guaranteed mortgages - ✔✔A mortgage in which a party other than the borrower
assures payment in the event of default, e.g., a VA-guaranteed mortgage.
✔✔Insured mortgages: - ✔✔A mortgage in which a party other than the borrower
assures payment on default by the mortgagor in return for the payment of a premium,
e.g., FHA-insured mortgages, private mortgage insurance (PMI)."
✔✔First mortgage: - ✔✔A mortgage that has priority over all other mortgage liens on a
property."
✔✔Junior liens: - ✔✔A lien placed on a property after a previous lien has been made
and recorded; a lien made subordinate to another by agreement; e.g., second and third
mortgages; also called second lien or third lien."
✔✔Amortization is defined as - ✔✔"The process of retiring a debt or recovering a
capital investment, typically through scheduled, systematic repayment of the principal."
✔✔Fixed rate mortgage - ✔✔A conventional mortgage with an interest rate that does
not vary over the life of the loan."
✔✔A Balloon Mortgage is defined as: - ✔✔"A mortgage that is not fully amortized at
maturity and requires a lump sum, or balloon, payment of the outstanding balance"
✔✔Graduated payment mortgage: - ✔✔"A debt secured by real estate in which
mortgage payments are matched to projected increases in the borrower's income. The
periodic payments start out low and gradually increase."
✔✔Adjustable Rate Mortgages (ARMs) are defined as: - ✔✔"A debt secured by real
estate with an interest rate that may move up or down following a specified schedule or
in accordance with the movements of a standard or index to which the interest rate is
tied."
