Page |1
Principles of Real Estate 2 Questions and
Correct Answers/ Latest Update / Already
Graded
Loss of value due to lack of modernization is called:
Ans: Functional obsolescence
The __________ is considered the most reliable approach to value
because it is based on verifiable market events.
Ans: Sales comparison approach
A loss in a property's value due to daily wear and tear is an example of
_______
Ans: Physical deterioration
The appraiser will use the cost approach to value:
Ans: A unique building
A real property appraisal will contain an analysis of the each of the
following, EXCEPT:
Ans: Personal property
All rights reserved © 2025/ 2026 |
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The appraisal principle of conformity tells us that a house is worth the
most when:
Ans: It is in a neighborhood of similarly priced homes
Official property value for tax purposes is called:
Ans: Assessed value
The appraisal principle of __________ states that the purchase price of
a property is affected by the expectation of future appeal and benefits.
Ans: Anticipation
The best definition of market value is:
Ans: The most probable price a property should bring in a
competitive and open market
The effective age of a house can be younger than its __________ if it
has been well-maintained.
Ans: Chronological age
All rights reserved © 2025/ 2026 |
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In which approach to value is the appraiser calculating depreciation as
a factor along with land value and replacement cost for a structure?
Ans: The Cost Approach
The primary purpose of the FHA is:
Ans: To insure loans
When a loan is funded, the FHA charges a(n) __________ which can be
paid at closing or added to the loan at funding.
Ans: Up-Front Mortgage Insurance Premium
The borrower's monthly payment includes principal and interest plus
one-twelfth of the annual property tax assessment and one-twelfth of
the annual insurance premium. This is a:
Ans: Budget loan
Which of the following statements about the use of gift funds in
government loans is true?
Ans: Property must be owner-occupied, Donor must be a
relative, domestic partner, or fiancé, Gift funds may be used for
the entire down payment
All rights reserved © 2025/ 2026 |
Principles of Real Estate 2 Questions and
Correct Answers/ Latest Update / Already
Graded
Loss of value due to lack of modernization is called:
Ans: Functional obsolescence
The __________ is considered the most reliable approach to value
because it is based on verifiable market events.
Ans: Sales comparison approach
A loss in a property's value due to daily wear and tear is an example of
_______
Ans: Physical deterioration
The appraiser will use the cost approach to value:
Ans: A unique building
A real property appraisal will contain an analysis of the each of the
following, EXCEPT:
Ans: Personal property
All rights reserved © 2025/ 2026 |
, Page |2
The appraisal principle of conformity tells us that a house is worth the
most when:
Ans: It is in a neighborhood of similarly priced homes
Official property value for tax purposes is called:
Ans: Assessed value
The appraisal principle of __________ states that the purchase price of
a property is affected by the expectation of future appeal and benefits.
Ans: Anticipation
The best definition of market value is:
Ans: The most probable price a property should bring in a
competitive and open market
The effective age of a house can be younger than its __________ if it
has been well-maintained.
Ans: Chronological age
All rights reserved © 2025/ 2026 |
, Page |3
In which approach to value is the appraiser calculating depreciation as
a factor along with land value and replacement cost for a structure?
Ans: The Cost Approach
The primary purpose of the FHA is:
Ans: To insure loans
When a loan is funded, the FHA charges a(n) __________ which can be
paid at closing or added to the loan at funding.
Ans: Up-Front Mortgage Insurance Premium
The borrower's monthly payment includes principal and interest plus
one-twelfth of the annual property tax assessment and one-twelfth of
the annual insurance premium. This is a:
Ans: Budget loan
Which of the following statements about the use of gift funds in
government loans is true?
Ans: Property must be owner-occupied, Donor must be a
relative, domestic partner, or fiancé, Gift funds may be used for
the entire down payment
All rights reserved © 2025/ 2026 |
