______ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age, transaction price, etc.
Bracketing
Bridging
Substituting
Surrounding
What type of real estate market occurs when supply is high and demand is low?
Buyer’s market
Farmer’s market
Seller’s market
Stagnant market
Which loan type is a fixed-rate mortgage where the monthly principal payments increase over time, according to a set schedule?
Blanket
Growing equity
Negative amortization
Pledged account
Which entity ensures that contractors perform their work according to code by inspecting their job sites?
The attorney general
The building department
The code department
The secretary of state
When a buyer and a seller agree upon a price, what have they determined?
Assessed value
Investment value
List price
Market value
Chance and Lucky have an option agreement between them in which no consideration is provided. Is this enforceable?
No
Only for option periods of less than six months in length
Only if the sales price is clearly stated
Yes, as long as the option is executed by the required deadline
The ease with which the property can be conveyed to another describes which factor that influences value?
Demand
Scarcity
Transferability
Utility
Who generally writes a broker’s price opinion?
A buyer
An appraiser
A real estate broker for a buyer
A real estate broker for a lender
Carson is purchasing a $600,000 property by obtaining an 80/20 loan. How much is Carson financing?
$120,000
$420,000
$480,000
$600,000
As demand increases, what happens to price?
Decreases
Exceeds demand
Increases
Stays the same
Carl is interested in purchasing a lot that is 200 feet wide by 600 feet long. The seller has it priced at $800 per acre. How much would this lot cost?
$1,600
$2,204
$4,132
$4,800
Which of the following describes the appropriate capital gains exclusion for a taxpayer’s primary residence?
The taxpayer lived in the home at least five of the seven years immediately preceding the sale, with an exclusion of up to $125,000 for single taxpayers, $250,000 for couples filing jointly.
The taxpayer lived in the home at least five of the seven years immediately preceding the sale, with an exclusion of up to $250,000 for single taxpayers, $500,000 for couples filing jointly.
The taxpayer lived in the home at least two of the five years immediately preceding the sale, with an exclusion of up to $125,000 for single taxpayers, $250,000 for couples filing jointly.
The taxpayer lived in the home at least two of the five years immediately preceding the sale, with an exclusion of up to $250,000 for single taxpayers, $500,000 for couples filing jointly.
What is a real estate investment trust (REIT)?
A company that owns, and usually operates, income-producing real estate
An entity used to pool mortgage loans and issue mortgage-backed securities
An organization that manages income-producing real estate properties
An organization with many investors who jointly participate in a real estate investment
Which position of ownership can Aaron, a sales associate, hold in the brokerage partnership with Frank and Jose?
Director
General partner
Limited partner
Qualifying broker
What type of real estate market occurs when supply is low and demand is high?
Buyer’s market
Farmer’s market
Seller’s market
Stagnant market