HRES - Hawaii Real Estate Salesperson

Question 1: An appraiser notes exterior paint that is simply peeling and, quite separately, a deep foundation crack whose repair would cost far more than the value the fix would restore. How should the appraiser BEST classify the peeling paint by itself?

Incurable physical deterioration

Curable functional obsolescence

Incurable external obsolescence

Curable physical deterioration

Question 2: In the sales comparison approach, a comparable sold recently has a feature the subject property lacks, such as an extra garage bay. The instructor stresses which property's price is adjusted and how. What does the appraiser do to reflect this difference?

Add to the comparable's price

Subtract from the subject's price

Subtract from the comparable's price

Add to the subject's price

Question 3: A buyer's lender needs an unbiased, independent opinion of a property's value to support a mortgage decision, prepared under recognized professional standards by a qualified valuer. Among a market analysis, a broker opinion, and a formal appraisal, which BEST meets this specific need?

The comparative market analysis

The broker opinion of value

The seller's asking price

The formal appraisal

Question 4: In a comparative market analysis, a comparable that recently sold has no ocean view, while the subject condo does have one. The instructor stresses which property gets adjusted and in which direction. What does the salesperson do to reflect the subject's superior view?

Add to the comparable's price

Subtract from the comparable's price

Add to the subject's price

Subtract from the subject's price

Question 5: After completing the sales comparison, cost, and income approaches, an appraiser arrives at three different value indications for one property. Rather than simply averaging them, the appraiser weighs each approach's reliability to reach one final figure. What is this final step called?

Averaging

Capitalization

Reconciliation

Amortization

Question 6: A well-kept home loses value because a noisy new highway was built just beyond its boundary line, a negative influence located entirely off the subject property. Which type of depreciation does this represent, and is it curable by the owner?

Physical deterioration, curable

Functional obsolescence, curable

External obsolescence, curable

External obsolescence, incurable

Question 7: A loan officer phones the appraiser handling a purchase and hints that the deal will collapse unless the value comes in at the contract price. The instructor says federal rules forbid this pressure. Which principle protects the appraiser from such influence?

Appraiser independence

Freedom of contract

Caveat emptor

Procuring cause

Question 8: In the cost approach, an appraiser must decide between estimating the cost to build an exact duplicate of an older home using the same materials and design, or the cost to build a functional equivalent using current methods. Which term names the exact-duplicate figure?

Replacement cost

Market value

Assessed value

Reproduction cost

Question 9: A borrower seeks a mortgage from a federally regulated bank to buy a home, and the loan will be sold to a federal secondary-market agency. The instructor says this circumstance triggers a mandatory appraisal by a state-licensed appraiser. What is this type of transaction called?

A federally related transaction

A private cash sale

An arm's-length exchange

A conventional lease

Question 10: A Maui instructor explains that real estate markets move through recurring phases, swinging from periods of rising prices and heavy building to oversupply, softening prices, and eventual recovery, driven largely by the interaction of supply and demand. This recurring movement is best called what?

The principle of anticipation

Highest and best use

The real estate market cycle

Reconciliation of value

Question 11: Rumors spread that a major employer will relocate to a town, and buyers begin bidding up nearby homes today based on the expected future benefit. The instructor notes this same principle underlies the income approach. Which principle is at work?

Change

Substitution

Conformity

Anticipation

Question 12: A salesperson divides several comparable sale prices by their living area to obtain a quick per-square-foot figure, then applies it to the subject's size for a fast benchmark. The instructor cautions this measure is only rough. Why is price per square foot merely approximate?

It ignores quality and location differences

It requires a certified appraisal

It always overstates smaller homes

It excludes the land entirely

Question 13: A Kona homeowner considers remodeling an outdated kitchen versus adding a private bowling alley. The appraiser evaluates each project by how much it would raise the value of the whole property, not by its cost. Which principle guides this analysis?

Substitution

Conformity

Contribution

Anticipation

Question 14: When choosing comparables for a market analysis, a salesperson finds two nearly identical homes, but one sold with an extra bathroom and a renovated kitchen the subject lacks. These differences must be accounted for. What is the purpose of adjusting for such features?

To raise the subject's assessed value

To equalize comparables to the subject

To average all the sale prices

To set the broker's commission

Question 15: An owner builds a large, luxurious home in a neighborhood of small, aging houses. The appraiser warns that the surrounding modest homes will hold the luxury home's value below what it might command in a fancier area. Which principle applies?

Progression

Conformity

Regression

Anticipation

Question 16: A modest, older cottage sits on a street where most of the surrounding homes are large, expensive, and beautifully maintained. The appraiser notes the cottage tends to be worth more than it would be elsewhere. Which principle explains this upward pull?

Progression

Regression

Conformity

Contribution

Question 17: Two rental buildings sell for the same price and collect the same gross rent, yet one carries far heavier operating expenses and vacancy. An instructor warns that a gross rent multiplier would treat them as equal. What weakness of the multiplier does this reveal?

It overstates net operating income

It requires certified appraisers

It double-counts other income

It ignores expenses and vacancy

Question 18: A downtown Honolulu parking lot could legally and physically hold an office tower that would earn far more, and such development is financially feasible and maximally productive. An appraiser weighing this uses which principle to identify the most profitable use?

Plottage

Highest and best use

Progression

Contribution

Question 19: An appraiser valuing a mixed-use income property wants a quick multiplier based on the building's total annual gross income from all sources, not merely its rent, to compare it against similar properties. Which multiplier relies on total annual gross income?

Gross rent multiplier

Capitalization rate

Gross income multiplier

Effective gross income

Question 20: A broker debates whether to rely on a gross rent multiplier or a full income capitalization when advising on a large downtown office tower with many tenants and complex expenses. For which property is the gross rent multiplier best suited instead?

A large office tower

A small residential rental

A regional shopping mall

A vacant industrial site

HRES Hawaii Real Estate Salesperson - Set 3 - Part 1

Question 1: An appraiser notes exterior paint that is simply peeling and, quite separately, a deep foundation crack whose repair would cost far more than the value the fix would restore. How should the appraiser BEST classify the peeling paint by itself?

Question 2: In the sales comparison approach, a comparable sold recently has a feature the subject property lacks, such as an extra garage bay. The instructor stresses which property's price is adjusted and how. What does the appraiser do to reflect this difference?

Question 3: A buyer's lender needs an unbiased, independent opinion of a property's value to support a mortgage decision, prepared under recognized professional standards by a qualified valuer. Among a market analysis, a broker opinion, and a formal appraisal, which BEST meets this specific need?

Question 4: In a comparative market analysis, a comparable that recently sold has no ocean view, while the subject condo does have one. The instructor stresses which property gets adjusted and in which direction. What does the salesperson do to reflect the subject's superior view?

Question 5: After completing the sales comparison, cost, and income approaches, an appraiser arrives at three different value indications for one property. Rather than simply averaging them, the appraiser weighs each approach's reliability to reach one final figure. What is this final step called?

Question 6: A well-kept home loses value because a noisy new highway was built just beyond its boundary line, a negative influence located entirely off the subject property. Which type of depreciation does this represent, and is it curable by the owner?

Question 7: A loan officer phones the appraiser handling a purchase and hints that the deal will collapse unless the value comes in at the contract price. The instructor says federal rules forbid this pressure. Which principle protects the appraiser from such influence?

Question 8: In the cost approach, an appraiser must decide between estimating the cost to build an exact duplicate of an older home using the same materials and design, or the cost to build a functional equivalent using current methods. Which term names the exact-duplicate figure?

Question 9: A borrower seeks a mortgage from a federally regulated bank to buy a home, and the loan will be sold to a federal secondary-market agency. The instructor says this circumstance triggers a mandatory appraisal by a state-licensed appraiser. What is this type of transaction called?

Question 11: Rumors spread that a major employer will relocate to a town, and buyers begin bidding up nearby homes today based on the expected future benefit. The instructor notes this same principle underlies the income approach. Which principle is at work?

Question 12: A salesperson divides several comparable sale prices by their living area to obtain a quick per-square-foot figure, then applies it to the subject's size for a fast benchmark. The instructor cautions this measure is only rough. Why is price per square foot merely approximate?

Question 13: A Kona homeowner considers remodeling an outdated kitchen versus adding a private bowling alley. The appraiser evaluates each project by how much it would raise the value of the whole property, not by its cost. Which principle guides this analysis?

Question 14: When choosing comparables for a market analysis, a salesperson finds two nearly identical homes, but one sold with an extra bathroom and a renovated kitchen the subject lacks. These differences must be accounted for. What is the purpose of adjusting for such features?

Question 15: An owner builds a large, luxurious home in a neighborhood of small, aging houses. The appraiser warns that the surrounding modest homes will hold the luxury home's value below what it might command in a fancier area. Which principle applies?

Question 16: A modest, older cottage sits on a street where most of the surrounding homes are large, expensive, and beautifully maintained. The appraiser notes the cottage tends to be worth more than it would be elsewhere. Which principle explains this upward pull?

Question 17: Two rental buildings sell for the same price and collect the same gross rent, yet one carries far heavier operating expenses and vacancy. An instructor warns that a gross rent multiplier would treat them as equal. What weakness of the multiplier does this reveal?

Question 18: A downtown Honolulu parking lot could legally and physically hold an office tower that would earn far more, and such development is financially feasible and maximally productive. An appraiser weighing this uses which principle to identify the most profitable use?

Question 19: An appraiser valuing a mixed-use income property wants a quick multiplier based on the building's total annual gross income from all sources, not merely its rent, to compare it against similar properties. Which multiplier relies on total annual gross income?

Question 20: A broker debates whether to rely on a gross rent multiplier or a full income capitalization when advising on a large downtown office tower with many tenants and complex expenses. For which property is the gross rent multiplier best suited instead?

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