FRESA - Florida Real Estate Sales Associate Exam

Question 1: An instructor in Ocala explains that when demand for housing rises sharply, builders cannot deliver finished homes for many months because of permitting, financing, and construction time. Which characteristic of the real estate market does that delay illustrate for her students?

Supply responds slowly to demand

Land is completely indestructible

Every parcel is legally unique

Ownership rights are fully divisible

Question 2: A licensee in Naples notices that listings are sitting on the market far longer than usual, inventory keeps climbing, and buyers routinely negotiate well below the asking price. Which market condition do those signs describe in her local area?

A balanced market with normal inventory

A seller's market with rising prices

A market experiencing rapid absorption

A buyer's market with excess supply

Question 3: A developer in Fort Myers wants to know how quickly the market has been buying up available units in a competing subdivision, measured as the number of units sold during a period. Which measure gives her that information?

The absorption rate

The capitalization rate

The assessment ratio

The gross rent multiplier

Question 4: An appraiser in Ocala explains that even two identical houses built by the same builder on the same street cannot be perfect substitutes for one another, because each occupies its own separate location. Which characteristic is she describing?

Immobility of the land itself

Scarcity of developable land

Uniqueness of every parcel

Permanence of the investment

Question 5: An instructor in Tampa asks her class to distinguish three terms that beginning students constantly confuse, since one describes what was spent, one describes what was paid, and one describes what a property is worth today. Which statement is correct?

They all mean the same thing

Cost and value are identical terms

Price and value are identical terms

Cost, price, and value are distinct

Question 6: An appraiser in Ocala begins an assignment by identifying the problem and the client, then gathers data, applies the three approaches to value, reconciles her indications, and issues her final report. Which term describes that ordered sequence of steps?

The appraisal process

The reconciliation method

The comparative analysis

The capitalization technique

Question 7: An investor in Ocala buys two adjoining vacant lots and combines them into a single larger parcel, and the combined parcel is worth noticeably more than the two lots were worth separately. What is that increase in value called?

Accretion of the parcels

Conformity within the block

Plottage resulting from assemblage

Progression from the neighbors

Question 8: An appraiser in Winter Park notes that an owner has installed an elaborate indoor pool in a neighborhood of modest homes, and buyers plainly will not pay what the improvement cost. Which appraisal principle explains that result for the appraiser?

The principle of anticipation

The principle of conformity

The principle of substitution

The principle of competition

Question 9: An appraiser in Ocala is deciding whether a homeowner's recent kitchen renovation added as much to the property's value as the owner spent on it, and she analyzes that single component against the whole. Which principle is she applying?

The principle of regression

The principle of change

The principle of balance

The principle of contribution

Question 10: An appraiser in Naples estimates the value of a small office building by considering the rents it will produce over the coming years and the proceeds an owner would receive on an eventual resale. Which principle underlies that reasoning?

The principle of conformity

The principle of substitution

The principle of anticipation

The principle of contribution

Question 11: An appraiser in Ocala reminds a client that neighborhoods pass through growth, stability, decline, and revitalization, and that no opinion of value can be treated as permanent. Which appraisal principle is she invoking in that reminder to her client?

The principle of change

The principle of balance

The principle of plottage

The principle of conformity

Question 12: An appraiser in Ocala observes that unusually high profits from self-storage development have drawn several new operators into the same submarket, and returns are now falling back toward ordinary levels. Which principle describes that pattern in that particular submarket?

The principle of anticipation

The principle of contribution

The principle of regression

The principle of competition

Question 13: An appraiser in Bradenton values a vacant residential lot by studying recent sales of similar vacant lots nearby and adjusting each of them for differences in size, frontage, and location. Which method of site valuation is she using?

The allocation method

The sales comparison method

The income capitalization method

The development method

Question 14: An appraiser in Ocala finds a comparable sale that has a three-car garage while the subject property has only a two-car garage, and everything else about the two homes is essentially the same. How does she treat that difference?

Adjust the subject property upward

Adjust the subject property downward

Adjust the comparable upward

Adjust the comparable downward

Question 15: An appraiser in Ocala reviews a comparable sale in which the seller carried financing at a rate far below market, allowing the buyer to pay a higher price than the property would otherwise command. What does she do?

Adjust for the favorable financing terms

Discard the sale as unusable

Report the price without adjustment

Average it with unadjusted sales

Question 16: An investor in Naples notices that when capitalization rates in a market move higher while the income a building produces stays flat, the value indicated by the income approach moves in a particular direction. Which direction is that?

Value rises with the rate

Value stays exactly the same

Value falls as the rate rises

Value becomes impossible to estimate

Question 17: An appraiser in Ocala is assembling operating expenses for an apartment building and must decide which items belong in that category before she arrives at net operating income for the property she is valuing. Which items belong there?

Mortgage principal and interest payments

Depreciation claimed for income taxes

Capital improvements to the roof

Management fees, insurance, and maintenance

Question 18: An appraiser in Ocala starts with the total rent an apartment building would collect at full occupancy, then subtracts an allowance for vacancy and collection loss before considering any expenses. What figure has she reached at that point?

Net operating income

Effective gross income

Potential gross income

Cash flow before taxes

Question 19: An appraiser in Ocala prices a proposed building by itemizing every unit of material, every hour of labor, and every overhead item a contractor would incur, then totaling them. Which cost estimating method has she used for the building?

The square foot method

The unit-in-place method

The quantity survey method

The index method

Question 20: An appraiser in Ocala estimates that a building has an economic life of fifty years and an effective age of ten years, and she applies that relationship to the replacement cost to measure accrued depreciation. Which method is she applying?

The straight-line or age-life method

The observed condition breakdown method

The market extraction method

The capitalized income method

FRESA Florida Real Estate Sales Associate Exam - Set 5 - Part 1

Question 1: An instructor in Ocala explains that when demand for housing rises sharply, builders cannot deliver finished homes for many months because of permitting, financing, and construction time. Which characteristic of the real estate market does that delay illustrate for her students?

Question 2: A licensee in Naples notices that listings are sitting on the market far longer than usual, inventory keeps climbing, and buyers routinely negotiate well below the asking price. Which market condition do those signs describe in her local area?

Question 3: A developer in Fort Myers wants to know how quickly the market has been buying up available units in a competing subdivision, measured as the number of units sold during a period. Which measure gives her that information?

Question 4: An appraiser in Ocala explains that even two identical houses built by the same builder on the same street cannot be perfect substitutes for one another, because each occupies its own separate location. Which characteristic is she describing?

Question 5: An instructor in Tampa asks her class to distinguish three terms that beginning students constantly confuse, since one describes what was spent, one describes what was paid, and one describes what a property is worth today. Which statement is correct?

Question 6: An appraiser in Ocala begins an assignment by identifying the problem and the client, then gathers data, applies the three approaches to value, reconciles her indications, and issues her final report. Which term describes that ordered sequence of steps?

Question 7: An investor in Ocala buys two adjoining vacant lots and combines them into a single larger parcel, and the combined parcel is worth noticeably more than the two lots were worth separately. What is that increase in value called?

Question 8: An appraiser in Winter Park notes that an owner has installed an elaborate indoor pool in a neighborhood of modest homes, and buyers plainly will not pay what the improvement cost. Which appraisal principle explains that result for the appraiser?

Question 9: An appraiser in Ocala is deciding whether a homeowner's recent kitchen renovation added as much to the property's value as the owner spent on it, and she analyzes that single component against the whole. Which principle is she applying?

Question 10: An appraiser in Naples estimates the value of a small office building by considering the rents it will produce over the coming years and the proceeds an owner would receive on an eventual resale. Which principle underlies that reasoning?

Question 11: An appraiser in Ocala reminds a client that neighborhoods pass through growth, stability, decline, and revitalization, and that no opinion of value can be treated as permanent. Which appraisal principle is she invoking in that reminder to her client?

Question 12: An appraiser in Ocala observes that unusually high profits from self-storage development have drawn several new operators into the same submarket, and returns are now falling back toward ordinary levels. Which principle describes that pattern in that particular submarket?

Question 13: An appraiser in Bradenton values a vacant residential lot by studying recent sales of similar vacant lots nearby and adjusting each of them for differences in size, frontage, and location. Which method of site valuation is she using?

Question 14: An appraiser in Ocala finds a comparable sale that has a three-car garage while the subject property has only a two-car garage, and everything else about the two homes is essentially the same. How does she treat that difference?

Question 15: An appraiser in Ocala reviews a comparable sale in which the seller carried financing at a rate far below market, allowing the buyer to pay a higher price than the property would otherwise command. What does she do?

Question 16: An investor in Naples notices that when capitalization rates in a market move higher while the income a building produces stays flat, the value indicated by the income approach moves in a particular direction. Which direction is that?

Question 17: An appraiser in Ocala is assembling operating expenses for an apartment building and must decide which items belong in that category before she arrives at net operating income for the property she is valuing. Which items belong there?

Question 18: An appraiser in Ocala starts with the total rent an apartment building would collect at full occupancy, then subtracts an allowance for vacancy and collection loss before considering any expenses. What figure has she reached at that point?

Question 19: An appraiser in Ocala prices a proposed building by itemizing every unit of material, every hour of labor, and every overhead item a contractor would incur, then totaling them. Which cost estimating method has she used for the building?

Question 20: An appraiser in Ocala estimates that a building has an economic life of fifty years and an effective age of ten years, and she applies that relationship to the replacement cost to measure accrued depreciation. Which method is she applying?

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