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National PSI Broker Exam prep 2024 Questions and Answers 2024 / 2025 (Verified Answers by Expert)
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National PSI Broker Exam prep 2024 Questions and Answers 2024 / 2025 (Verified Answers by Expert)
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National PSI Broker Exam prep.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/National%20PSI%20BNational PSI Broker Exam prep
1. A broker is completing a CMA to determine the potential listing price of a seller's
home.Which of the following is NOT part of the final CMA given to theseller?
A)
Highest and best use evaluationB)
Comparable sales analysisC)
Adjustments to past salesD)
Pictures of comparables
ANS A)
The answer is highest and best use evaluation. An appraiser does a highest andbest use
evaluation, which does not appear in a CMA.
2. Houses in the local area have had an increase in sales price and a decreasein days on the
market. A broker who is attempting to determine the current market value for a
residential listing would get the BEST estimate of value byusing
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A)
a GRM as the primary consideration to determine value.B)
the cost approach with reproduction estimates.C)
comparables that are no more than six months old.D)
comparables that are no more than 12 months old.
ANS C)
The answer is comparables that are no more than six months old. In a changing market, the
more recent the comparables, the more likely they are to reflect upwardor downward price
changes.
3. Rental rates have increased by 2% in the last six months. Which appraisalprinciple
BEST explains this rate increase?
A)
Principle of substitutionB)
Principle of supply and demand
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C)
Principle of contributionD)
Principle of highest and best use
ANS B)
The answer is principle of supply and demand.The principle of supply and demandstates that as
fewer properties become available for rent or sale, the price owners can charge will increase.
4. The current monthly GRM in a neighborhood is 200, and the annual incomeis $24,000.
What is the estimated value of a property in this neighborhood?
A)
$200,000
B)
$240,000
C)
$400,000
D)
$4,800,000
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ANS C)
The answer is $400,000. Monthly GRM × monthly income = value. 200 × 2,000($24,000 ÷ 12) =
$400,000.
5. The subject property has two baths and one fireplace. The property acrossthe street
sold for $181,000 and has two baths and two fireplaces.The propertybehind the subject
sold for $175,000 and has two baths and no fireplace. In the area, baths are worth $5,000
and fireplaces are worth $3,000. What is thesubject property worth?
A)
$175,000
B)
$177,000
C)
$178,000
D)
$180,000
ANS The answer is $178,000
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