Real Estate Analysis: Environments and Activities

Tuesday, May 15, 2012

Student Created Objective Questions Chapters 11 and 12

Elizondo Mendoza

Fin-180

Ch-11

1. An impact fee is a charge to a developer by municipality to mitigate the cost of expanding public facilities and services.

a. True

b. False

2. The comprehensive plan is carried out through zoning, building codes and subdivision regulations.

a. True

b. False

3. How is the effective rate calculated?

a. Taxable value x Millage rate

b. Assessed value – Exemptions

c. Property Tax Due / Ad Valorem Value

d. Ad Valorem Value / Property Tax Due

4. A comprehensive plan has a long-term scope of typically 10 – 30 yrs.

a. True

b. False

5. A special exception to a specific zoning requirement on a site.

a. Special use permit

b. Zoning variance

c. Grandfathered use

d. Administrative change

6. Taxation rate is derived as the ratio of the fiscal budget, less anticipated fee collections, and the tax digest, less total exemptions.

a. True

b. False

7. Administrative, legislative, and judicial are the three types of zoning reliefs.

a. True

b. False

8. How is the tax saving from exemptions is calculated?

a. Taxable Value x Millage Rate

b. Assessed Value – Exemptions

c. Exemptions x Millage Rate

d. Ad Valorem Value x Assessment Ration

Answers 1.True 2. True 3. C 4. True 5. B 6. True 7. True 8. C

Ch-12

1. A valuation technique where no is justified in paying more for a property than the cost of buying a similar site and constructing replacement improvements on it.

a. Sales Comparison Approach

b. Income Approach

c. Market Approach

d. Cost Approach

2. Capitalization is the process of converting an income stream into a lump sum estimate of present value.

a. True

b. False

3. An agent is someone who acts on behalf of someone else, called the principal.

a. True

b. False

4. A real estate broker representing the buyer in an agent-principal fiduciary capacity.

a. Cooperating broker

b. Selling broker

c. Buyers broker

d. Listing broker

5. The cooperating broker is the broker who brings the buyer to the transaction.

a. True

b. False

6.      The problem solving heuristic characterized by giving the greatest weight to the most recently encountered evidence.
a.    Anchoring
            b.    Confirmation
            c.    Recency

7. Heuristics is the subconscious mental shortcuts employed by human problem solvers needing to minimize cognitive effort.

a. True

b. False

8. Excusive-agency is an agency that exists when a broker represents both the buyer and the seller of a transaction.

a. True

b. False

Answers: 1. D 2. True 3. True 4. C 5. False 6. C 7. True 8. False

Sunday, May 6, 2012

Ch 11 + Ch 12 questions

Fin180
Vue Her

Ch. 12

True or False

1. Listing broke is a broke who has entered into an agency agreement to market and sell property on behalf of its owner.

True or False

2. Exclusive right to sell relationship is the most common listing or brokerage agency relationship.

3. Which agency grants the broker the right to collect a commission if the property is sold during the listing period unless the owner brings the buyer to the transaction?

A) Special Agency

B) Dual Agency

C) Exclusive Agency

D) Limited Agency

4. A broker who brings the buyer to the transaction and the broker may or may not actually represent the buyer.

A) Selling Broker

B) Listing Broker

C) Cooperating Broker

D)Buyer's Broker

5.Which member of the following is NOT a part of the Developer's team:

A) Subcontractors

B)Engineers

C)Contractors

D) Architects

6.What common type of scheduling tool is used in real estate construction?

A) Gantt Chart

B) P6 Primavera

C)Microsoft Excel

D)Microsoft Project

True or False

7. Market Value is value in use originates from the worth or utility that a property has for a particular individual who uses it.

True or False

8. Value in Exchange is a value in exchange concept generally analogous to market value, it is the most likely transaction price for a parcel of real estate when market conditions are unremarkable.

1. T 2.T 3.C 4.A 5.A 6.A 7.F 8.F

Ch. 11

True or False

1.Building code is a minimum required construction standard used to protect the health and safety of the public.

True or False

2.Mandatory Dedication is the act of a developer yielding ownership of land and improvements to a local municipality.

True or False

3.Assessed Value = Ad Valorem Vale x Assessment Ratio

True or False

4. Ad Valorem Value is the assessor's estimated of a property's market value for taxation purpose.

True or False

5. Special Assessment is an additional tax on a specific property, typical for a service or infrastructure improvement that benefits just one property owner or a defined group of property owners.

6. The assessed value after all applicable exemptions and also used to calculate taxes owed.

A)Tax Digest

B) Tax exempt Property

C)Tax Rate

D) Taxable Value

7.An appeal to court for zoning relief by a property owner after administrative, legislative, or both types of relief have been denied.

A)Judicial Change

B)Assessment Appeal

C)Mass Valuation

D)Legislative Change

8. A reduction in a property's assessed value for a specific groups of residents, resulting in a reduction in the property tax liability.

A)Dedication

B)Exemption

C)Grandfathered use

D)Homestead Exemption

1. T 2.F 3.T 4.T 5.T 6.D 7.A 8.B

Thursday, May 3, 2012

Student Created Objective Questions

Gonzalo Manriquez

Fin 180

Student Created Objective Questions

CH 12

1. The first step when gathering relevant data and performing supportive analysis is

a) Neighborhood analysis.

b) Defining the problem.

c) City/ regional analysis

d) Comparable data collection

2. The broker who brings the buyer to the transaction, the selling broker may or may not actually represent the buyer.

a) Listing broker

b) Selling broker

c) Cooperating broker

d) Buyer’s broker

3. Who provides a plan to locate the building, and natural plantings on the site?

a) Buyer

b) Seller

c) Landscape architect

d) Engineer

4. A standard definition of market value is the most probable arms length price that a property will bring in a fair, open, and competitive market.

a) T

b) F

5. The commercial property income approach has a projection phase, a capitalization phase, and a finalizing phase.

a) T

b) F

6. The integrity and soundness of the overall building system is the responsibility of the architect, who recommend structural designs, materials, component specifications, and process of construction.

a) T

b) F

7. Engineers are the people who actually construct the physical space or directly manage those who do.

a) T

b) F

8. Gannt chart is a project management technique common in real estate construction, used to schedule work and measure progress against expectations.

a) T

b) F

Answers: 1) B, 2) B, 3) C, 4) T, 5) F, 6) F, 7) F, 8) T

FIN 180 Final Exam Schedule

The FIN 180 Real Estate Principles final exam is scheduled for Wednesday, May 16 from 3:30 to 5:30 PM.

For the final exam schedule, please visit http://www.csufresno.edu/ClassSchedule/finals/2012Spring.shtml

Monday, April 30, 2012

Chapter 13 Consuming Activity

by Mario Jauregui

True or False

Mortgage payments are structured to pay down the debt over time and automatically build up equity.

True or False

With an interest-only mortgage there is no periodic amortization and the loan is paid off at maturity with a single payment called a balloon payment.

Multiple Choice

A mortgage product designed to meet the needs of elderly homeowners by providing an annuity or line of credit secured by a mortgage to be paid off when the house is sold or refinanced or the estate probated.

(A) Negative Amortization

(B) Revers Annuity Mortgage (RAM)

(D) None of the Above

Multiple Choice

This is a variable rate payment that is not specifically designed to help the young first time home owner, it was designed to help the lender cope with purchasing power losses due to inflation.

(A) Annual Percentage Rate (APR)

(B) Adjustable Rate Mortgage (ARM)

(D) Non of the above

True or False

Origination fees are charged to cover the lender’s costs of processing the application of the loan.

True or False

Negative amortization happens when the principal of the loan is reduced over time.

F: The principal of the loan actually increases due to the periodic payments being less for the period and the shortfall is then added to the principal

Multiple Choice

Lender’s true yield once points and other fees are considered. It is the lender’s IRR assuming the borrower holds the loan to maturity.

(A) Points

(B) Investment Value

(D) Annual Percentage Rate (APR)

True or False

Points are loan charges to lessen the lender’s effective rate of return. Also known as discount points.

F: These charges actually BOOST the lender’s effective rate of return

Chapter 12 Professional Activity

by Mario Jauregui

True or False

Depreciation is when a decrease in value suffered by a property because of a diminished ability to serve the needs of its users and potential users typically due to age or functional disutility.

True or False

Income approach is one of the three valuation techniques taught to real estate appraisers requiring an estimate of the market value of the land combined with an estimate of the reproduction cost new of all improvements adjusted by estimated depreciation.

F: Cost Approach fits the description above.

Multiple Choice

The process of converting an income stream into a lump sum estimate of present value.

(A) Dual Agency

(B) Descriptive Appraisal Process

(D) Capitalization

Multiple Choice

Who is part of the developer’s team?

(A) Architects

(B) Engineers

(D) All of the Above

(E) Non of the above

True or False

A descriptive appraisal process is the process that an appraiser actually follows when valuing real property.

True or False

Value Estimate via Income Approach = Estimated Gross Monthly Rent x GRM

Multiple Choice

An analogous term for the prescriptive appraisal process, that systematic process that appraisers are taught to follow when valuing real estate is a ________________.

(A) Normative Process

(B) Investment Value

(D) Non of the Above

True or False

Heuristics is the subconscious mental shortcuts employed by human problem solvers needing to minimize cognitive efforts.

Chapter 11 Government Activity

by Mario Jauregui

True or False

Ad valorem value is the assessor’s estimate of a property’s market value for taxation purposes.

True or False

Tax Rate = Tax Digest Less Total Exemptions ÷ Budget Amount for Fiscal Year Less Anticipated Fee Collection

F: Tax Rate = Budget Amount for Fiscal Year Less Anticipated Fee Collection ÷ Tax Digest Less Total Exemptions

Multiple Choice

An appeal to a court for zoning relief by a property owner after administrative, legislative, or both types of relief have been denied.

(A) Zoning Variance

(B) Special Use Permit

(D) Judicial Change

Multiple Choice

An ___________________ is a relatively minor exception to zoning for a specific parcel of land.

(A) Legal Nonconforming Use

(B) Conformity

(D) Zoning

(E) Non of the above

C: Administrative Change

True or False

A conformity is a valuation principle that recognizes that property values are sustained or enhanced when a property conforms to its surrounding.

True or False

Property Tax Savings from Exemption = Exemption Amount + Tax Rate

F: Property Tax Savings From Exemption = Exemption Amount x Tax Rate

Multiple Choice

Assessment offices offer times during the year in which property owners can make an ________________.

(A) Mass Valuation

(B) Assessment Appeal

(D) All of the Above

True or False

An assessment ratio is the ratio of assessed value to the ad valorem market value estimate, generally 40% to 100% of the ad valorem estimate.