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National PSI Broker Exam prep 2024/2025 A+ score assured(100% verified)
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  • Dubai RERA Broker
  • Institution
  • Dubai RERA Broker

National PSI Broker Exam prep 2024/2025 A+ score assured(100% verified)

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Document information

  • March 13, 2024
  • 30
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • dubai rera broker
  • a broker is completing a cma to determine the pot
  • a a grm as the primary consideration to determine
  • a principle of substitution b principle of supp

Written for

  • Dubai RERA Broker
  • Dubai RERA Broker

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Tutor96

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National
PSI
Broker
Exam
prep
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
the
seller?
A)
Highest
and
best
use
evaluation
B)
Comparable
sales
analysis
C)
Adjustments
to
past
sales
D)
Pictures
of
comparables
-
ANSA)
The
answer
is
highest
and
best
use
evaluation.
An
appraiser
does
a
highest
and
best
use
evaluation,
which
does
not
appear
in
a
CMA.
Houses
in
the
local
area
have
had
an
increase
in
sales
price
and
a
decrease
in
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
by
using
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.
-
ANSC)
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
upward
or
downward
price
changes.
Rental
rates
have
increased
by
2%
in
the
last
six
months.
Which
appraisal
principle
BEST
explains
this
rate
increase?
A)
Principle
of
substitution
B)
Principle
of
supply
and
demand
C)
Principle
of
contribution
D)
Principle
of
highest
and
best
use
-
ANSB) The
answer
is
principle
of
supply
and
demand.
The
principle
of
supply
and
demand
states
that
as
fewer
properties
become
available
for
rent
or
sale,
the
price
owners
can
charge
will
increase.
The
current
monthly
GRM
in
a
neighborhood
is
200,
and
the
annual
income
is
$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
-
ANSC)
The
answer
is
$400,000.
Monthly
GRM
×
monthly
income
=
value.
200
×
2,000
($24,000
÷
12)
=
$400,000.
The
subject
property
has
two
baths
and
one
fireplace.
The
property
across
the
street
sold
for
$181,000
and
has
two
baths
and
two
fireplaces.
The
property
behind
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
the
subject
property
worth?
A)
$175,000
B)
$177,000
C)
$178,000
D)
$180,000
-
ANSThe
answer
is
$178,000
Subject
Property
Comp
1
$181,000
Comp
2
$175,000
2
baths
2
baths
no
adjustment
2
baths
no
adjustment
1
fireplace
2
fireplaces
-
$3,000
No
fireplace
+
$3,000
Adjusted
price
$178,000
Adjusted
price
$178,000
According
to
federal
government
lending
regulations,
a
buyer
purchasing
a
home
must
have
an
appraisal
for
all
the
following
types
of
financing
EXCEPT
A)
FHA.
B)
VA.
C)
loan
sold
to
FNMA. D)
seller
carry.
-
ANSD)
The
answer
is
seller
carry.
All
government
loans
and
any
sold
on
the
secondary
market
require
an
appraisal.
A
seller-carry
loan,
or
seller
financing,
may
or
may
not
require
an
appraisal.
A
buyer
chooses
a
loan
with
an
LTV
ratio
of
90%,
which
requires
the
purchase
of
PMI,
instead
of
a
loan
with
an
80%
LTV,
which
would
not
require
the
insurance.
The
buyer
MOST
likely
made
this
choice
because
A)
if
the
buyer
defaults,
PMI
will
protect
the
buyer
by
paying
off
the
full
loan.
B)
the
buyer
will
make
a
larger
down
payment
but
have
smaller
monthly
payments,
including
PMI.
C)
paying
PMI
will
mean
that
all
mortgage
payments
and
homeowners
association
fees
are
deferred
in
case
of
default.
D)
the
buyer
wants
a
smaller
down
payment,
even
though
the
buyer
will
have
to
pay
PMI.
-
ANSD)
The
answer
is
the
buyer
wants
a
smaller
down
payment,
even
though
the
buyer
will
have
to
pay
PMI.
Buyers
are
willing
to
pay
PMI
(private
mortgage
insurance)
in
order
to
bring
a
smaller
down
payment
to
closing,
which
will
mean
a
higher
monthly
payment.
PMI
protects
lenders
in
case
of
default.
A
buyer
is
getting
a
new
mortgage
with
a
95%
loan-to-value
ratio.
The
final
loan
amount
the
lender
will
lend
the
buyer
is
determined
by
the
A)
lower
of
the
sales
price
or
appraised
value.
B)
higher
of
the
sales
price
or
appraised
value.
C)
sales
price
only.
D)
appraised
value
only.
-
ANSA)
The
answer
is
lower
of
the
sales
price
or
appraised
value.
The
loan-to-value
(LTV)
ratio
is
determined
by
the
lower
of
the
sales
price
or
appraised
value.
The
difference
between
using
a
partially
amortized
loan
or
an
interest-only
term
loan
is
that
the
partially
amortized
loan
would
result
in
A)
smaller
payments
and
a
smaller
balloon
payment.

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