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MN Real Estate Salesperson Exam 1 > 3.8 > Flashcards

3.8 Flashcards

0
Q

The 4 stages of a property’s life cycle are Growth, Stability, Decline, and ______.

A

Revitalization

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1
Q

The four elements of value in appraisal law are ______, ______, _____, and ______. (Remember the acronym STUD).

A

Security, transferability, utility and demand

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2
Q

The remaining period for which real estate improvements are expected to generate more income than operating expenses cost is known as _______.

A

Economic life

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3
Q

The rules of real estate appraisal are codified by the ________.

A

Uniform Standards of Professional Appraisal Practice (USPAP)

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4
Q

To represent yourself as a real estate appraiser in Minnesota, you need a _______.

A

License

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5
Q

True or False:
In the United States, the rules of real estate appraisal are codified in the Uniform Standards of Professional Appraisal Practice (USPAP)

A

True

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6
Q

The Uniform Standards of Professional Appraisal Practice (USPAP) was developed to protect lenders against unethical and _______ appraisers.

A

Incompetent

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7
Q

True or False:
An officer or employee of a corporation, partnership, or other business entity may act as a real estate appraiser without obtaining a license in Minnesota.

A

True

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8
Q

A real estate appraisal is a service performed by an appraiser that develops an opinion of value, based upon the highest and _____ of real property.

A

Best use

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9
Q

True or False:

The four-stage life cycle of real property includes: Growth, Stability, Decline and Revitalization.

A

True

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10
Q

In appraisal, “sales comparison” is an approach to determine ______.

A

Value

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11
Q

True or False:

The federal govenment regulates appraisal licensing.

A

False (States do)

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12
Q

The largest and most influential professional organization of real estate appraisers in America is _________.

A

The Appraisal Institute

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13
Q

To become an appraiser in Minnesota, you need _______ hours of pre-license training.

A

90

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14
Q

True or False:

An appraiser develops an opinion of value, based upon the highest and best use of real property.

A

True

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15
Q

An appraiser develops a/an _________ based upon the highest and best use of real property.

A

Opinion of value

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16
Q

In Minnesota licensed real estate salespersons or brokers do not need an appraisal license when giving a ________ of the price of real estate.

A

Market analysis

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17
Q

In Minnesota, city _______ do not need an appraisal license when giving an opinion of value.

A

Assessors

18
Q

_______ is defined as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale.

A

Market value

19
Q

_______ determines the net present value (NPV), which is a formula used by an appraiser conducting this type of appraisal.

A

Value-in-use

20
Q

The value-in-use type of appraisal determines the _______ of a future cash flow that an asset is expected to generate for a specfic owner under a specific use.

A

Net present value (NPV)

21
Q

______ is the value to one particular investor, which may be above or below the fair market value of a property.

A

Investment value

22
Q

________ determines the value of real property covered by an insurance policy.

A

Insurable value Appraisal

23
Q

_______ is a term that means the appraiser has to consider the appraisal approach most appropriate for the subject property, the quality of available data, and the amount of adjustments between comparable properties.

A

Reconciliation

24
Q

The ______ is what was paid for a property.

A

Price

25
Q

_____ is what the price for a property could be with fair market conditions.

A

Market Value

26
Q

The four elements of _______ are Scarcity, Transferability, Utility, and Demand (STUD).

A

Value

27
Q

Regarding “elements of value,” the acronym STUD stands for _____, _______, ________, and _______.

A

Scarcity, transferability, utility, and demand

28
Q

Regarding value _____ is the present or anticipated supply of a product in relation to the demand for it.

A

Scarcity

29
Q

The element of _______ means the property must be transferable in order to be marketable.

A

Transferability

30
Q

The element of _____ means the capacity of a commodity to satisfy a need or desire.

A

Utility

31
Q

The element of ______ is created by utility.

A

Demand

32
Q

The principle of ______ holds that maximum value is realized when land uses are compatible, and a reasonable degree of architectural harmony is present.

A

Conformity

33
Q

The principle of _______ states that value will tend to be set by the cost of acquiring an equally desirable substitute.

A

Substitution

34
Q

The principle of ______ states that the worth of a greater-valued object is reduced by association with many lesser-valued objects of the same type.

A

Regression

35
Q

The ______ approach to the appraisal looks at the price of similar properties being sold in the same marketplace.

A

Sales comparison

36
Q

In the sales comparison approach to appraisal, a comparable property (a “comp”) is adjusted _____ if the comp has more valuable features than the property being appraised.

A

Downward

37
Q

A comp is adjusted ______ when it has less valuable features than the property being appraised.

A

Upward

38
Q

The _______ approach is used with the insurable value appraisal.

A

Cost

39
Q

______ cost means the cost of reproducing an exact replica of the property.

A

Reproduction

40
Q

_______ cost is the cost of building a house or other improvement which has the same utiltiy, but using modern design, workmanship, and materials.

A

Replacement

41
Q

________ is the loss of value from all causes within the property except those due to physical deterioration.

A

Functional Obsolescence

42
Q

The _______ appraisal approach is used to value commercial and investment properties.

A

Income

43
Q

A _______ rate (cap rate) is used to derive a capital value for the expected investment property’s net income.

A

Capitalization

MN Real Estate Salesperson Exam 1 (41 decks)

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