1
National PSI Broker Exam Post test
EXAM LATEST UPDATED VERSION
QUESTIONS AND VERIFIED CORRECT
ANSWERS JUST RELEASED
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 - (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?
, 2
A)
$120,000
B)
$200,000
C)
$240,000
D)
$2,400,000 - (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)
, 3
date of sale of each sold comparable. - (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. - (ANSWER)B)
The answer is income approach to value. The income approach is used when a
property, such as a shopping center, generates revenue.
, 4
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. - (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)
National PSI Broker Exam Post test
EXAM LATEST UPDATED VERSION
QUESTIONS AND VERIFIED CORRECT
ANSWERS JUST RELEASED
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 - (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?
, 2
A)
$120,000
B)
$200,000
C)
$240,000
D)
$2,400,000 - (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)
, 3
date of sale of each sold comparable. - (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. - (ANSWER)B)
The answer is income approach to value. The income approach is used when a
property, such as a shopping center, generates revenue.
, 4
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. - (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)
