Real Estate Final Exam Questions with
Guaranteed Pass Solutions 2026-2027
Updated.
An appraiser is comparing income from a multi-tenant office building to comparable properties,
so he converts the income for each property to ______.
Annual dollars per room
Annual dollars per square foot
Annual dollars per tenant
Tenants per square foot - Answer Annual dollars per square foot
Appraisers compare rents from similar properties by converting to a common unit of
measurement. For commercial properties, this is typically by annual dollars per square foot.
Which of the following best and most comprehensively describes the overall importance of
accurate, detailed property management reports?
a. Accurate monthly reports are used to create accurate annual expense reports and forecasts
for a concise year-over-year profit and loss projection.
b. Accurate reporting provides a clear picture of the property's physical and financial status, and
helps in identifying property-related trends so appropriate adjustments can be made.
c. Accurate reporting provides detailed statistics to the owner for use in planning and budgeting
maintenance for next year.
d. Inaccurate reports may lead to poor decisions regarding necessary property improvements. -
Answer b. Accurate reporting provides a clear picture of the property's physical and financial
status, and helps in identifying property-related trends so appropriate adjustments can be
made.
While all of these are true, only one considers the comprehensive affect reports have on the
overall management of property. Reporting involves financials, as well as other areas of interest.
They are not limited to expense reports and forecasting, maintenance budgeting, or property
improvements. Accurate reporting in all areas helps the owner (and the property manager)
make the best decisions in all of those areas, plus identifying property-related trends and
making adjustments accordingly.
,Why would a buyer want to know whether any additions or alterations were made to a
property?
So the buyer can decide whether a price reduction is in order
So the buyer can determine if permits were pulled
So the buyer can remove these items prior to closing
So the buyer can use the same contractor for additional additions and alterations - Answer So
the buyer can determine if permits were pulled
If additions or alterations were made, a buyer will want to know whether permits were pulled.
Unpermitted work may not be up to code and could lead to problems down the road for the
buyer.
A real estate auction may result from a foreclosure, a voluntary sale, or a(n) ______.
Encumbrance
Mechanic's lien
Personal loan default
Tax lien - Answer Tax lien
Property may be auctioned involuntarily as a result of unpaid taxes or a mortgage that's in
foreclosure.
How does an appraiser begin an appraisal?
By estimating the value of the land
By gathering and analyzing data
By identifying the data needed
By stating the problem - Answer By stating the problem
First, the appraiser states the problem, noting the purpose of the appraisal, the interest to be
appraised, the type of value to be estimated, and the date of the value estimate.
While reviewing her purchase contract, Jeanette's client asked, "What does this inspection
contingency do?" How should Jeanette frame her response?
, "Like all contingencies, it means you'll get your earnest money deposit back if you back out of
the contract because of the contingency."
"That contingency means you can terminate the contract without penalty for any reason related
to the home inspection results."
"The inspection contingency gives you the legal right to terminate the contract if the seller
refuses to fix the items you request."
"The inspection contingency is designed to protect you in case the home inspector finds
something wrong with the property that can't be fixed or that makes you uncomfortable." -
Answer "The inspection contingency is designed to protect you in case the home inspector
finds something wrong with the property that can't be fixed or that makes you uncomfortable."
A general statement explaining the purpose of the contingency is appropriate. Interpreting the
implications of what happens if the buyer terminates the contract is an example of
unauthorized practice of law.
Which entity guarantees loans?
Federal Deposit Insurance Corporation
Federal Housing Administration
U.S. Department of the Interior
U.S. Department of Veterans Affairs - Answer U.S. Department of Veterans Affairs
The VA guarantees loans against default. VA loans are for veterans only and require no down
payment.
If there's an overall change in market value, what type of adjustment can an appraiser use to
show the overall effect of the change?
Dollar adjustment
Gross adjustment
Net adjustment
Percentage adjustment - Answer Percentage adjustment
Appraisers can use percentage adjustments to account for an overall change in market value.
Guaranteed Pass Solutions 2026-2027
Updated.
An appraiser is comparing income from a multi-tenant office building to comparable properties,
so he converts the income for each property to ______.
Annual dollars per room
Annual dollars per square foot
Annual dollars per tenant
Tenants per square foot - Answer Annual dollars per square foot
Appraisers compare rents from similar properties by converting to a common unit of
measurement. For commercial properties, this is typically by annual dollars per square foot.
Which of the following best and most comprehensively describes the overall importance of
accurate, detailed property management reports?
a. Accurate monthly reports are used to create accurate annual expense reports and forecasts
for a concise year-over-year profit and loss projection.
b. Accurate reporting provides a clear picture of the property's physical and financial status, and
helps in identifying property-related trends so appropriate adjustments can be made.
c. Accurate reporting provides detailed statistics to the owner for use in planning and budgeting
maintenance for next year.
d. Inaccurate reports may lead to poor decisions regarding necessary property improvements. -
Answer b. Accurate reporting provides a clear picture of the property's physical and financial
status, and helps in identifying property-related trends so appropriate adjustments can be
made.
While all of these are true, only one considers the comprehensive affect reports have on the
overall management of property. Reporting involves financials, as well as other areas of interest.
They are not limited to expense reports and forecasting, maintenance budgeting, or property
improvements. Accurate reporting in all areas helps the owner (and the property manager)
make the best decisions in all of those areas, plus identifying property-related trends and
making adjustments accordingly.
,Why would a buyer want to know whether any additions or alterations were made to a
property?
So the buyer can decide whether a price reduction is in order
So the buyer can determine if permits were pulled
So the buyer can remove these items prior to closing
So the buyer can use the same contractor for additional additions and alterations - Answer So
the buyer can determine if permits were pulled
If additions or alterations were made, a buyer will want to know whether permits were pulled.
Unpermitted work may not be up to code and could lead to problems down the road for the
buyer.
A real estate auction may result from a foreclosure, a voluntary sale, or a(n) ______.
Encumbrance
Mechanic's lien
Personal loan default
Tax lien - Answer Tax lien
Property may be auctioned involuntarily as a result of unpaid taxes or a mortgage that's in
foreclosure.
How does an appraiser begin an appraisal?
By estimating the value of the land
By gathering and analyzing data
By identifying the data needed
By stating the problem - Answer By stating the problem
First, the appraiser states the problem, noting the purpose of the appraisal, the interest to be
appraised, the type of value to be estimated, and the date of the value estimate.
While reviewing her purchase contract, Jeanette's client asked, "What does this inspection
contingency do?" How should Jeanette frame her response?
, "Like all contingencies, it means you'll get your earnest money deposit back if you back out of
the contract because of the contingency."
"That contingency means you can terminate the contract without penalty for any reason related
to the home inspection results."
"The inspection contingency gives you the legal right to terminate the contract if the seller
refuses to fix the items you request."
"The inspection contingency is designed to protect you in case the home inspector finds
something wrong with the property that can't be fixed or that makes you uncomfortable." -
Answer "The inspection contingency is designed to protect you in case the home inspector
finds something wrong with the property that can't be fixed or that makes you uncomfortable."
A general statement explaining the purpose of the contingency is appropriate. Interpreting the
implications of what happens if the buyer terminates the contract is an example of
unauthorized practice of law.
Which entity guarantees loans?
Federal Deposit Insurance Corporation
Federal Housing Administration
U.S. Department of the Interior
U.S. Department of Veterans Affairs - Answer U.S. Department of Veterans Affairs
The VA guarantees loans against default. VA loans are for veterans only and require no down
payment.
If there's an overall change in market value, what type of adjustment can an appraiser use to
show the overall effect of the change?
Dollar adjustment
Gross adjustment
Net adjustment
Percentage adjustment - Answer Percentage adjustment
Appraisers can use percentage adjustments to account for an overall change in market value.
