Texas Real Estate Principles II Ch 3 Unit 4 Practice Quiz - I missed these

Question 1

When analyzing comparables, what will an appraiser do to equalize each comparable sale to the subject property?

Answer 1

1. Apply Adjustments 2. Form an opinion of Value 3. Determine conditions of sale 4. Calculate economic rent

Apply Adjustments; After analyzing and verifying the comps, appraisers narrow down the number of sales, listings, and pending sales to those most similar to the subject. The next step is to apply adjustments to the comps. Appraisers apply adjustments to the sales prices of comparable properties in an effort to equalize the comparable sale to the subject property.

Question 2

Which organization identifies issues and opinions on recognized valuation methods and techniques, which may apply to all disciplines within the appraisal profession?

Answer 2

1. The Appraiser Qualifications Board 2. The Appraisal Practices Board 3. The Appraisal Standards Board 4. The Texas Real Estate Commission

The Appraisal Practices Board (APB) is composed of five to seven members who can serve up to eight years on the Board. The APB identifies issues and opinions on Recognized Valuation methods and Techniques, which may apply to all disciplines within the appraisal profession.

Question 3

Based on the Texas Real Estate License Act, a licensee cannot perform an appraisal, unless:

Answer 3

1. he or she is receiving commission for an opinion of value 2. he or she is given the authority by an employing broker 3. he or she is licensed by the Texas Real Estate Commission as an appraiser of value 4. he or she is licensed or certified under chapter 1103 of the Texas Occupations Code

According to the Texas Real Estate License Act, “A real estate licensee may not perform an appraisal of real property unless the licensee is licensed or certified under chapter 1103 of the Texas Occupations Code.”

Question 4

the upper limit of value tends to be set by the cost of acquiring an equally desirable substitute, assuming no untimely delays. A prudent investor would pay no more for an income-producing property than it would cost to build or purchase a similar property.

Answer 4

what is the principle of substitution

Question 5

An appraiser usually estimates the value of a property by using three major approaches. To obtain a final estimate of value the appraiser ______ the three indications of value.

Answer 5

1. amortizes 2. averages 3. finalizes 4. reconciles

Reconciliation, or correlation, of value occurs when the appraiser decides which of the values is the most appropriate for the subject property and uses that figure to determine the final estimate for the property in question.

Question 6

The process by which the appraiser evaluates, chooses, and selects from among alternative conclusions to reach a final value estimate. During the appraisal process, generally more than one approach is applied, and each approach typically results in a different indication of value.

Answer 6

what is Reconciliation Mr Alex, LETS GO! Its Alex Trebak btw

Question 7

Appraisers report appraisal results using one of two reporting options. The type of report that is the brifest presentation of an appraisal and contains the least detail is the: ______

Answer 7

1. Functional utility report 2. Sales comparison report 3. Restricted appraisal report 4. Controlled Assessment Report

The Restricted Appraisal Report

Question 8

is the briefest presentation of an appraisal and contains the least detail. It covers the same categories as the appraisal report with a few differences.

Answer 8

Restricted Appraisal Report

Question 9

the formula used to calculate the gross rent multiplier is:

Answer 9

GRM = market value / gross rent

Question 10

_____ relies upon the premise that there is a relationship between the income a property produces and the value of that property.

Answer 10

Direct Capitalization

Question 11

Appraisers report appraisal results using one of two reporting options. The type of report that is the briefest presentation of an appraisal and contains the least detail is the: ______

Answer 11

1. Functional utility report 2. Sales comparison report 3. Restricted appraisal report 4. Controlled Assessment Report

The Restricted Appraisal Report

Question 12

the classifications of real estate appraiser licensing in Texas are

Answer 12

Appraiser Trainee, Licensed Appraiser, Certified Residential Appraiser, and Certified General Appraiser.

Question 13

A(n) ____ is used for determining an appropriate listing price for a seller’s home.

Answer 13

(CMA) or Comparative Market Analysis

Question 14

A ______ is a comparison analysis that real estate brokers use while working with a seller to determine an appropriate listing price for the seller’s house.

Answer 14

Comparative Market Analysis

Question 15

develops, interprets, and amends the Uniform Standards of Professional Appraisal Practice

Answer 15

The Appraisal Standards Board (ASB)

Question 16

is made up of six appraisers who are appointed by TAF’s board of trustees for three-year terms. Develops, interprets, and amends the uniform standards of professional appraisal practice (USPAP)

Answer 16

the appraisal standards board (ASB)