Section 15 Multiple Choice

Question 1

Taylor is looking at the physical characteristics of the property she is getting ready to list for sale. Since she knows the physical characteristics of land, she is able to deduce and theorize how these factors can influence market conditions. She strategically lists the property at a competitive price for the current market conditions. Which one of the following contains ALL of the physical characteristics of real estate?

Answer 1

[A] Land is immobile, indestructible, nonhomogeneous, and restricted by governmental controls.

Land is immobile, tangible, nonhomogeneous, and not restricted by governmental controls.

Land is mobile, indestructible, homogeneous, and restricted by governmental controls.

Land is mobile, transformable, homogeneous, and restricted by governmental controls.

Question Feedback
[Section 15A, Slide 19]

Question 2

400 Units are rented out of 450 total units. What is the occupancy rate?

Answer 2

[A] 89%
11%
72%
66%

Question Feedback
[Section 15B, Slide 53] 400÷450=0.88888889 or 89%

Question 3

The occupancy rate of Fred’s complex was 75%. There were 312 units. How many units were filled?

Answer 3

243
416
[A] 234
250

Question Feedback
[Section 15B, Slide 53] 312×0.75=234

Question 4

In order to assess the current strength of the housing market, Marla pulled records from the MLS. All of the following would be information that she could collect form the MLS that would help her to assess the strength of the market, except which piece of information?

Answer 4

Number of homes sold
Average prices of homes sold
Average length of time on the market to produce a sale
[A] Average number of deals closed by each agent in the area

Question Feedback
[Section 15B, Slide 60]

Question 5

The fact that land is influenced by changes in the surrounding area describes what aspect of land?

Answer 5

[A] Immobility of real estate
Indestructibility of land
Land is unique
Governmental controls through zoning, building codes, taxes, etc.

Question Feedback
[Section 15A, Slide 26]

Question 6

What do limitations on how property can be used, standards for building size, and placement and safety describe?

Answer 6

Immobility of real estate
Indestructibility of land
Land is unique
[A] Governmental controls through zoning, building codes, taxes, etc.

Question Feedback
[Section 15A, Slide 52]

Question 7

The supply of housing depends greatly on skilled labor, especially new housing, without which there would be little supply. Other variables that influence supply include all of the following except which one?

Answer 7

The availability of money to finance growth
How much land is available in the proposed area
Whether building materials are readily available
[A] Whether consumers can get appropriate financing

Question Feedback
[Section 15B, Slide 18]

Question 8

The Economic Characteristics of Real Estate include which one of the following?

Answer 8

[A] The relationship between supply, demand, and price.
The fact that the market is quick to respond to change in supply and demand.
Supply is driven by consumer preference.
Demand is driven by availability.

Question Feedback
[Section 15A, Slide 57]

Question 9

Maria, a real estate licensee, knows that buyers’ tastes and preferences will make a difference in where homeowners are interested in buying. There are several variables that influence demand. Which one of the following is an example of one of these variables that she will encounter?

Answer 9

[A] The price of real estate
The uniformity of real estate
A and B are correct
None of the above

Question Feedback
[Section 15B, Slide 3]

Question 10

Which of the following is a physical characteristic of land?

Answer 10

Supply is driven by availability
The fact that demand is driven by consumer preference
[A] The fact that real estate is nonhomogeneous
The fact that the market is slow to respond to change in supply and demand

Question Feedback
[Section 15A, Slide 19]

Question 11

A poor market will produce negative effects on the following except what?

Answer 11

Longer days on the market
A drop in housing prices
A drop in the amount of houses sold
[A] Shorter days on the market

Question Feedback
[Section 15B, Slide 62]

Question 12

Rusty managed an apartment building that had 55 total units. 22 of the units were rented. Calculate the vacancy rate.

Answer 12

[A] 60%
20%
75%
25%

Question Feedback
[Section 15B, Slide 52] 55-22=33÷55=0.6

Question 13

Market Indicators include all of the following except which one?

Answer 13

Vacancy rates
[A] Depreciation
Price/sales information
Building permits

Question Feedback
[Section 15B, Slide 45]

Question 14

Government controls influence the market through all of the following except what?

Answer 14

Limitations on how a property can be used
Standards for building size, placement and safety
Tax assessment affect purchase decisions
[A] The value of a site in its current highest and best use

Question Feedback
[Section 15A, Slide 52]

Question 15

A’shayla understands that as a real estate licensee she must be able to interpret market conditions in order to best serve her customers. She has been studying her local market and knows that all of the following are indications of how the market can be influenced, except what?

Answer 15

An issuance of a number of new building permits would be considered a good indicator in judging whether the market is in a growth state.

If rental vacancy rates are increasing, consumers are choosing homeownership over rentals and is considered an indicator of a strong market.

[A] Since there is a greater supply of properties than buyers to buy, a seller’s market exists, and this will ensure that homes sell at higher prices.

The number of homes sold is considered an indicator that the market is strong and growing.

Question Feedback
[Section 15B, Slides 28, 33, 66]