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38 Cards in this Set
- Front
- Back
Which tool would a real estate investor use to seek to describe the human characteristics of consumers that may have bearing on their response to products, packaging, advertising and public relations efforts?
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psychographics
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Which factor does NOT affect the housing market segmentation?
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number of extended family living locally
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The first step in evaluating any property is to
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write a story.
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What seeks to relate the cash flow aspects of a property to the economic and social forces of its urban context?
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real estate market research
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Which step is NOT included in the Uniform Standards of Professional Appraisal Practice process?
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asking neighbors about the value of their properties
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The cost to reconstruct an existing building, at today’s dollar value, by replicating the building in its exact detail is called the
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reproduction cost.
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A seller’s investment value is
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the minimum amount he or she is willing to accept.
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The use of sale prices and first-year NOIs from comparable income properties to determine the going-in capitalization rate for the subject property is called the
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direct market extraction method.
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A lease that includes a clause requiring an 8% per year rent increase is referred to as a
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step up lease.
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Calculate the net operating income, given the following information:
Potential gross income: $295,000 Capitalization rate: 9% Vacancy and collection losses: 8% Selling expenses: 5 % Sale price: $1,250,000 |
$112,500
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The final price for each comparable property reached after all adjustments have been made is termed the:
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Final Adjusted Sale Price.
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The final price from each appraisal approach is termed the:
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Indicated Value.
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The final price after reconciliation of the answers obtained from two or more approaches is termed the
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Final Estimate of Value.
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A new house in good condition that has a poor floor plan would suffer from which type of accrued depreciation?
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Incurable functional obsolescence
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To reflect a change in market conditions between the date on which a comparable property sold and the date of appraisal of a subject property, which type of adjustment is made?
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Market conditions.
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The final price for each comparable property reached after all adjustments have been made is termed the:
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Final Adjusted Sale Price.
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The final price from each appraisal approach is termed the:
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Indicated Value.
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The final price after reconciliation of the answers obtained from two or more approaches is termed the
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Final Estimate of Value.
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A new house in good condition that has a poor floor plan would suffer from which type of accrued depreciation?
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Incurable functional obsolescence
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To reflect a change in market conditions between the date on which a comparable property sold and the date of appraisal of a subject property, which type of adjustment is made?
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Market Conditions
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The element of an adjustable interest rate that is the “moving part” is the:
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Index
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Which of these aspects of a mortgage loan will be addressed in the note rather than in the mortgage?
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Prepayment penalty
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A lender may reserve the right to require prepayment of a loan at any time they see fit through a(n):
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Demand clause
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When a buyer of a property with an existing mortgage loan acquires the property without signing the note for an existing loan the buyer is acquiring the property:
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Subject to the mortgage
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Which if these points in a mortgage loan would be addressed in the mortgage (possibly in the note as well)?
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escrows
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To finance property where either the borrower, the property, or both fail to qualify for the standard mortgage financing, a common nonmortgage solution is through the:
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Contract for deed.
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Ways that a lender may respond to a defaulted loan without resorting to foreclosure include all of the following except:
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Accelerate the debt.
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If the lender in a standard first mortgage wishes to foreclose cost effectively, it is crucial to have which clause in the mortgage:
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Acceleration clause
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A common risk that frequently interferes with a lender’s efforts to work out a defaulted loan through either nonforeclosure means or foreclosure is:
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Bankruptcy.
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The characteristics of a borrower than can be considered by a lender in a mortgage loan appreciation are limited by the:
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Equal Credit Opportunity Act.
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Foreclosure tends to be quickest in states that:
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Have power of sale.
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From a home mortgage lender’s perspective, which statement is true about the effect of bankruptcy upon foreclosure?
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Chapter 7 bankruptcy is the most “lender friendly” form.
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The most internationally oriented index rate for adjustable rate mortgages is:
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A LIBOR rate.
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A type of loan that has grown in volume in recent years which has raised concerns about predatory lending practices is the:
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Sub-prime mortgage
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A partially amortizing loan always will have
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a balloon payment
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With what type of loan security arrangement is the deed held by a neutral party and returned upon payment of the mortgage in full?
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Deed of trust.
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The Truth in Lending Act gives a home mortgage borrower how long to rescind a mortgage loan?
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Three days.
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Which statement is correct about the right of prepayment of a home mortgage loan?
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Most home mortgage loans have the right of prepayment without charge, but not all, and the borrower should check the loan carefully.
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