Reconciliation is best described as

analyzing the results from the three approaches to value

Investors who “pyramid” would be

refinancing property to buy additional property

The concept of “leverage” means which of the following?

Putting down as little money as possible to increase the ROI

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Chapter 16, 17

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75 Hour Pre-License Chapter Review Dearborn 13th Ed. Essentials of NJ Real Estate

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Questions 13

Answers

1
A bill of sale is used to transfer the ownership of
real property
fixtures
personal property
appurtenances
2
The three variables in the formula used in the income approach are
rate, value, and gross rent multiplier
income, rate, and value.
rate, value, and expenses
value, income, and expenses
3
Reconciliation is best described as
selecting the highest value by the three approaches to value
the final value by selecting one value from those given
comparing comparable properties & identifying their amenity
analyzing the results from the three approaches to value
4
Advantages of real estate investments include all EXCEPT
leverage
inflationary hedge
liquidity
income
5
The long-term capital gain tax treatment rate is a maximum of
10 percent
15 percent
20 percent
25 percent
6
The body of law that covers security agreements, financing statements, and bulk transfers is
Statute of Limitations
Parole Evidence Rule
American Land Title Law
Uniform Commercial Code
7
Which of the following would NOT be considered part of the cost approach?
Land value
Reproduction method
Depreciation
Rent loss
8
Investors who “pyramid” would be
refinancing property to buy additional property
building over the airspace of others
using minimal leverage in a purchase
installing additional floors to increase its value
9
The income approach as used by an appraiser makes use of which of the following?
Capitalization
Depreciation
Appreciation
Equalization
10
The concept of “leverage” means which of the following?
Putting down as much of own money as possible to reduce debt
Putting down as little money as possible to increase the ROI
Recover cost by tax deductions over the asset's life
Applying pressure on the seller to reduce his asking price
11
When the supply of a commodity decreases,
prices tend to rise
prices tend to drop
demand tends to rise
demand tends to drop
12
The income approach to value would be most important in the appraisal of
a condominium
an office building
a single-family residence
a vacant residential lot
13
Two characteristics of real estate that govern how the market reacts to supply and demand are
demographics and interest rates
mobility and conformity
uniqueness and immobility
financing and appraisal

Chapter 16, 17 Flashcards | StudBud