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National PSI Broker Exam prep questions with correct answers.
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National PSI Broker Exam prep questions with correct answers.
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National PSI Broker Exam prep questions withcorrect answers
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 Correct Answer-A)
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. Correct Answer-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 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 Correct Answer-B)
,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 Correct Answer-C)
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 Correct Answer-The 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.
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