ROWLETT REAL ESTATE SCHOOL
EXAM QUESTIONS AND ANSWERS
Which of the three approaches to value is the best when appraising an ad post office?
1. Income
2. Sales Comparison
3. Cost Depreciation - Correct Answers -Cost Depreciation
Which of the following would not be considered a federally related transaction?
1. One involving the exchange of a property for commercial owners.
2. One involving the appraisal of a property for an owner curious about their value.
3. One involving the sale of a property with an FHA loan.
4. One involving the investment of a property for an investor. - Correct Answers -One
involving the appraisal of a property for an owner curious about their value.
Which of the following does not influence demand?
1. Availability of land
2. Availability of credit
3. Changes in taste or preference
4. Changes in price or population - Correct Answers -Availability of land
What requires that only new development can be built after a minimum level of public
infrastructure has been assessed to be in place around the new site location first?
1. Zoning Codes
2. Concurrency Provision
3. Environmental Impact Statement
4. Site Plan Approval - Correct Answers -Zoning Codes
What concerns of land use that began prior to the current prevailing zoning laws, where
the owner confirmed to the then current zoning laws, then the zoning was changed later
causing them to no longer being compliant?
1. Non-confirming Use
2. Planned Unit Development
3. Variance
,4. Special Exception - Correct Answers -Non-conforming Use
What is it called when a business gathers assets, a good reputation, and has its value
go up over time?
1. Plottage
2. Positive Leverage
3. Positive Cash Flow
4. Appreciation - Correct Answers -Appreciation
What is an individual or group residing in a single home referred to as?
1. A family
2. Occupants
3. A resident(s)
4. A household - Correct Answers -A household
What is the added value as a result of consolidating two or more properties into one
larger parcel, thus increasing its value?
1. Assemblage
2. Plottage
3. Appreciation
4. Merging - Correct Answers -Plottage
Which of the following is not one of the characteristics of value?
1. Supply
2. Utility
3. Transferability
4. Demand - Correct Answers -Supply
Which of the following is not one of the types of risk that an investor has to deal with?
1. Business risk
2. Interest-rate risk
3. Financial risk
4. Asset risk - Correct Answers -Asset risk
When structures have lost some of their efficiency over time due to age, use,
deterioration, and obsolescence, this is called?
1. Depreciation
2. Appreciation
3. Obsolescence
4. Deterioration - Correct Answers -Depreciation
, If a hotel has 150 total units and 117 are occupied, what is the hotel's vacancy rate?
1. 22%
2. 225
3. 1.28%
4. 78% - Correct Answers -22%
Preferences on the area that homeowners are interested in buying is referred to as?
1. Economic outlook
2. Desirable
3. Ground zero
4. Situs - Correct Answers -Situs
Which of the following does not influence supply?
1. Availability of land
2. Availability of building materials
3. Availability of construction loans
4. Availability of skilled labor - Correct Answers -Availability of land
Real estate is a unique, where no two parcels are exactly alike. This means real estate
is considered to be what?
1. Immobile
2. Indestructible
3. Heterogeneous
4. Homogeneous - Correct Answers -Heterogeneous
Government controls do not influence the real estate market through what means?
1. Zoning codes
2. Building codes
3. Household composition
4. Taxes - Correct Answers -Household composition
Which of the approaches to value is the best when appraising a hotel would be?
1. Sales comparison
2. Cost depreciation
3. Square foot
4. Income - Correct Answers -Income
Which of the approaches to value is the best when appraising a house in a suburb?
EXAM QUESTIONS AND ANSWERS
Which of the three approaches to value is the best when appraising an ad post office?
1. Income
2. Sales Comparison
3. Cost Depreciation - Correct Answers -Cost Depreciation
Which of the following would not be considered a federally related transaction?
1. One involving the exchange of a property for commercial owners.
2. One involving the appraisal of a property for an owner curious about their value.
3. One involving the sale of a property with an FHA loan.
4. One involving the investment of a property for an investor. - Correct Answers -One
involving the appraisal of a property for an owner curious about their value.
Which of the following does not influence demand?
1. Availability of land
2. Availability of credit
3. Changes in taste or preference
4. Changes in price or population - Correct Answers -Availability of land
What requires that only new development can be built after a minimum level of public
infrastructure has been assessed to be in place around the new site location first?
1. Zoning Codes
2. Concurrency Provision
3. Environmental Impact Statement
4. Site Plan Approval - Correct Answers -Zoning Codes
What concerns of land use that began prior to the current prevailing zoning laws, where
the owner confirmed to the then current zoning laws, then the zoning was changed later
causing them to no longer being compliant?
1. Non-confirming Use
2. Planned Unit Development
3. Variance
,4. Special Exception - Correct Answers -Non-conforming Use
What is it called when a business gathers assets, a good reputation, and has its value
go up over time?
1. Plottage
2. Positive Leverage
3. Positive Cash Flow
4. Appreciation - Correct Answers -Appreciation
What is an individual or group residing in a single home referred to as?
1. A family
2. Occupants
3. A resident(s)
4. A household - Correct Answers -A household
What is the added value as a result of consolidating two or more properties into one
larger parcel, thus increasing its value?
1. Assemblage
2. Plottage
3. Appreciation
4. Merging - Correct Answers -Plottage
Which of the following is not one of the characteristics of value?
1. Supply
2. Utility
3. Transferability
4. Demand - Correct Answers -Supply
Which of the following is not one of the types of risk that an investor has to deal with?
1. Business risk
2. Interest-rate risk
3. Financial risk
4. Asset risk - Correct Answers -Asset risk
When structures have lost some of their efficiency over time due to age, use,
deterioration, and obsolescence, this is called?
1. Depreciation
2. Appreciation
3. Obsolescence
4. Deterioration - Correct Answers -Depreciation
, If a hotel has 150 total units and 117 are occupied, what is the hotel's vacancy rate?
1. 22%
2. 225
3. 1.28%
4. 78% - Correct Answers -22%
Preferences on the area that homeowners are interested in buying is referred to as?
1. Economic outlook
2. Desirable
3. Ground zero
4. Situs - Correct Answers -Situs
Which of the following does not influence supply?
1. Availability of land
2. Availability of building materials
3. Availability of construction loans
4. Availability of skilled labor - Correct Answers -Availability of land
Real estate is a unique, where no two parcels are exactly alike. This means real estate
is considered to be what?
1. Immobile
2. Indestructible
3. Heterogeneous
4. Homogeneous - Correct Answers -Heterogeneous
Government controls do not influence the real estate market through what means?
1. Zoning codes
2. Building codes
3. Household composition
4. Taxes - Correct Answers -Household composition
Which of the approaches to value is the best when appraising a hotel would be?
1. Sales comparison
2. Cost depreciation
3. Square foot
4. Income - Correct Answers -Income
Which of the approaches to value is the best when appraising a house in a suburb?
