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National PSI Broker Exam Post Test Questions and Complete Solutions Graded A+
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National PSI Broker Exam Post Test Questions and Complete Solutions Graded A+
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National PSI Broker Exam Post TestQuestions and Complete Solutins
Graded A+
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?
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)
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.
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)
reproduction cost of the subject property.
B)
value of the land under the church.
, C)
adjusted square footage of the subject and comparables.
D)
current depreciation of the property improvements. - Answer: c)
The answer is adjusted square footage of the subject and comparables. An appraiser using the cost
approach does not make adjustments for square footage or any other items
All of the following are true of FHA and VA loans EXCEPT
A)
there can be no prepayment penalty.
B)
the loan is assumable by a qualified buyer.
C)
the loan-to-value (LTV) ratio may typically be higher than that of conventional loans.
D)
an appraisal is not required. - Answer: D)
The answer is an appraisal is not required. FHA and VA loans require no prepayment penalty. The loans
are assumable by qualified buyers, and the LTV ratio is usually allowed to be higher than on
conventional loans. Like all federal loans, an appraisal is required for FHA and VA loans.
A state statute has set the maximum interest rate allowed on loans originated within the state. This type
of law is known as
A)
discount points.
B)
usury law.
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