CALIFORNIA REAL ESTATE EXAM 2024-2025
MULTIPLE CHOICE EXAM 70 QUESTIONS AND
CORRECT DETAILED ANSWERS WITH
RATIONALES|ALREADY GRADED
Terms in this set (52)
1. You are preparing a D. Sales comparison approach
competitive market analysis
on a vacant lot that you
hope to list for sale. Which
of the following approaches
to value will be used in the
development of the
estimated value?
A. Cost approach B. Gross
rent multiplier C. Income
approach D. Sales
comparison approach
,2. Which of the following C. A similar home sold by a motivated seller to a
comparables would be the motivated buyer.
most helpful in appraising a
home?
A. A similar home sold for
nonpayment of taxes.
B. A similar property sold
under duress.
C. A similar home sold by a
motivated seller to a
motivated buyer.
D. A similar home sold by an
unwilling seller to an unsure
buyer.
3. The period over which a A. economic life
property may be profitably
utilized is called its:
A. economic life
B. amortized life
C. income life
D. net life
4. Wear and tear to the load D. physical deterioration-incurable
bearing members of a
building would be classified
as:
A. functional obsolescence-
curable
B. physical deterioration-
curable
C. functional obsolescence-
incurable
D. physical deterioration-
incurable
, 5. While the economy is C. rise and housing prices rise
experiencing inflation,
interest rates:
A. drop and housing prices
rise
B. rise and housing prices
drop
C. rise and housing prices
rise
D. None of the above
6. When using the market- the entire property
data approach to appraise a
single-family home, recent
sales are compared to the
subject property as to:
A. capitalization rates
B. exterior features only
C. the entire property
D. rental income
7. A real estate commission selling price
is usually based on the:
A. listing price
B. selling price
C. down payment
D. loan amount
8. The increase of value with appreciation
the passage of time
describes: A. appreciation
B. "return on" investment C.
"return of" investment D.
depreciation
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