Ch 4 Test

Question 1

link

Answer 1

https://quizlet.com/515025256/rep-lesson-4-cumulative-quiz-flash-cards/

Question 2

The decision of what price to set for a home ultimately belongs to the:

a. agent
b. seller
c. appraiser
d. lender

Answer 2

b. seller

Explanation: The agent may suggest a range of prices that would be appropriate, but ultimately the decision of what price to charge belongs to the sellers.

Question 3

To use a property as a comparable, it should:

a. be in the same neighborhood as the subject property
b. be of a similar age and quality as the subject property
c. have sold within the last six months
d. All of the above

Answer 3

d. All of the above

Explanation: A comparable should be in the same location and of similar age, style, and quality as the subject property. Comparables older than six months should be used only if no other options are available, and should be adjusted for any inflation that may have occurred

Question 4

The agent is short of good comparables and notices a foreclosure in the neighborhood. The agent:
A. can freely use the foreclosure as a comparable
B. can use the foreclosure as a comparable if it has the same room count, style, and appeal of the subject property
C. can use the foreclosure as a comparable after adding 10% to its price
D. can’t use the foreclosure as a comparable unless the subject property is also a foreclosure

Answer 4

D.
can’t use the foreclosure as a comparable unless the subject property is also a foreclosure
Explanation: A foreclosure is not a sale under normal conditions and can only be used as a comparable if the subject property is also a foreclosure.