National PSI Broker Exam prep
Questions and Answers 100% PASS
A broker is completing a CMA to determine the potential listing price of a seller's
home. Which of the following is NOT part of the final CMA given to the seller?
A)
Highest and best use evaluation
B)
Comparable sales analysis
C)
Adjustments to past sales
D)
Pictures of comparables - CORRECT ANSWER-A)
,The answer is highest and best use evaluation. An appraiser does a highest and best
use evaluation, which does not appear in a CMA.
Houses in the local area have had an increase in sales price and a decrease in days
on the market. A broker who is attempting to determine the current market value
for a residential listing would get the BEST estimate of value by using
A)
a GRM as the primary consideration to determine value.
B)
the cost approach with reproduction estimates.
C)
comparables that are no more than six months old.
D)
comparables that are no more than 12 months old. - CORRECT ANSWER-C)
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,The answer is comparables that are no more than six months old. In a changing
market, the more recent the comparables, the more likely they are to reflect
upward or downward price changes.
Rental rates have increased by 2% in the last six months. Which appraisal principle
BEST explains this rate increase?
A)
Principle of substitution
B)
Principle of supply and demand
C)
Principle of contribution
D)
Principle of highest and best use - CORRECT ANSWER-B)
The answer is principle of supply and demand. The principle of supply and
demand states that as fewer properties become available for rent or sale, the price
owners can charge will increase.
, The current monthly GRM in a neighborhood is 200, and the annual income is
$24,000. What is the estimated value of a property in this neighborhood?
A)
$200,000
B)
$240,000
C)
$400,000
D)
$4,800,000 - CORRECT ANSWER-C)
The answer is $400,000. Monthly GRM × monthly income = value. 200 × 2,000
($24,000 ÷ 12) = $400,000.
The subject property has two baths and one fireplace. The property across the
street sold for $181,000 and has two baths and two fireplaces. The property behind
the subject sold for $175,000 and has two baths and no fireplace. In the area, baths
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Questions and Answers 100% PASS
A broker is completing a CMA to determine the potential listing price of a seller's
home. Which of the following is NOT part of the final CMA given to the seller?
A)
Highest and best use evaluation
B)
Comparable sales analysis
C)
Adjustments to past sales
D)
Pictures of comparables - CORRECT ANSWER-A)
,The answer is highest and best use evaluation. An appraiser does a highest and best
use evaluation, which does not appear in a CMA.
Houses in the local area have had an increase in sales price and a decrease in days
on the market. A broker who is attempting to determine the current market value
for a residential listing would get the BEST estimate of value by using
A)
a GRM as the primary consideration to determine value.
B)
the cost approach with reproduction estimates.
C)
comparables that are no more than six months old.
D)
comparables that are no more than 12 months old. - CORRECT ANSWER-C)
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
,The answer is comparables that are no more than six months old. In a changing
market, the more recent the comparables, the more likely they are to reflect
upward or downward price changes.
Rental rates have increased by 2% in the last six months. Which appraisal principle
BEST explains this rate increase?
A)
Principle of substitution
B)
Principle of supply and demand
C)
Principle of contribution
D)
Principle of highest and best use - CORRECT ANSWER-B)
The answer is principle of supply and demand. The principle of supply and
demand states that as fewer properties become available for rent or sale, the price
owners can charge will increase.
, The current monthly GRM in a neighborhood is 200, and the annual income is
$24,000. What is the estimated value of a property in this neighborhood?
A)
$200,000
B)
$240,000
C)
$400,000
D)
$4,800,000 - CORRECT ANSWER-C)
The answer is $400,000. Monthly GRM × monthly income = value. 200 × 2,000
($24,000 ÷ 12) = $400,000.
The subject property has two baths and one fireplace. The property across the
street sold for $181,000 and has two baths and two fireplaces. The property behind
the subject sold for $175,000 and has two baths and no fireplace. In the area, baths
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
