MRES Massachusetts Real Estate Salesperson Exam - Set 2 - Part 1

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: A lender hires a professional to provide an independent, supported opinion of a property's market value as of a specific date. What has the lender ordered?

An appraisal

A comparative market analysis

A home inspection

A title search

Question 2: An instructor distinguishes three ideas: the amount a buyer actually paid, the dollars spent to build the home, and what a willing buyer would likely pay today. Which term names the last idea?

Price

Cost

Value

Assessment

Question 3: An appraiser is asked to estimate the most probable price a property should bring in a competitive market, assuming a willing buyer, a willing seller, and no undue pressure. Which type of value is this?

Investment value

Market value

Assessed value

Insurable value

Question 4: An instructor explains that for a property to have value, it must be desired, useful, limited in supply, and capable of being transferred. Which set of elements is being described?

The three approaches to value

The four unities of title

The covenants of a deed

Demand, utility, scarcity, transferability

Question 5: An appraiser reasons that a buyer will pay no more for a home than the cost of acquiring an equally desirable substitute. Which appraisal principle is the appraiser applying?

Substitution

Anticipation

Escheat

Accession

Question 6: An investor values an apartment building chiefly on the future rental income she expects it to produce over time. Which appraisal principle underlies this reasoning?

Conformity

Substitution

Anticipation

Regression

Question 7: Before valuing a parcel, an appraiser determines the use that is legally permitted, physically possible, financially feasible, and most productive. Which concept is the appraiser identifying?

Plottage

External obsolescence

Gross rent multiplier

Highest and best use

Question 8: A modest home sits in a neighborhood of much larger, more expensive houses, and its value is pulled upward by its surroundings. Which appraisal principle explains this increase?

Regression

Progression

Substitution

Contribution

Question 9: An appraiser values a typical single-family home by comparing it to similar nearby homes that recently sold, adjusting for differences. Which approach to value is being used?

The sales comparison approach

The cost approach

The income approach

The gross rent multiplier

Question 10: An appraiser must value a newly built public library, a special-purpose property with almost no comparable sales and no rental income. Which approach will the appraiser most likely rely on?

The sales comparison approach

The income approach

The cost approach

The gross rent multiplier

Question 11: An appraiser values a leased shopping center by converting its expected net operating income into an estimate of value. Which approach to value is being applied?

The cost approach

The sales comparison approach

Reconciliation

The income approach

Question 12: An appraiser classifies a property's loss in value into three causes: physical wear, outdated design, and harmful outside influences. These three causes together describe which concept?

Depreciation

Appreciation

Amortization

Capitalization

Question 13: A 1960s house has an oddly arranged floor plan and a single outdated bathroom that buyers dislike, lowering its value. Which type of depreciation does this represent?

Physical deterioration

External obsolescence

Functional obsolescence

Economic appreciation

Question 14: A well-kept home loses value after a noisy highway is built next to the neighborhood, a condition the owner cannot change. Which type of depreciation is this?

Functional obsolescence

External obsolescence

Physical deterioration

Curable depreciation

Question 15: After completing more than one approach to value, an appraiser weighs the reliability of each result and forms a single final opinion of value. What is this final step called?

Capitalization

Amortization

Appreciation

Reconciliation

Question 16: A salesperson prepares an estimate of a likely listing price for a seller by reviewing recent comparable sales. The seller asks if this estimate is an appraisal. What is the best response?

No, it is a market analysis

Yes, it is a formal appraisal

Yes, if a fee is charged

No, it is a title opinion

Question 17: A Massachusetts salesperson gives a seller an opinion of likely selling price in the ordinary course of business. Under state law, what must the salesperson avoid doing with that opinion?

Using any comparable sales

Charging the seller a fee

Referring to it as an appraisal

Putting it in writing

Question 18: A lender wants a quick value estimate generated by software that analyzes public records and recent sales data without an appraiser visiting the property. Which tool is this?

A certified appraisal

A home inspection

A broker price opinion

An automated valuation model

Question 19: Appraisers across the country are required to follow a recognized set of professional standards governing how appraisals are developed and reported. Which standards are these?

The Massachusetts Sanitary Code

The Uniform Standards of Professional Appraisal Practice

The Statute of Frauds

The federal Fair Housing Act

Question 20: A federally related mortgage transaction requires a valuation. State and federal law generally require that this appraisal be performed by which kind of person?

A licensed or certified appraiser

Any real estate salesperson

The lender's loan officer

A licensed home inspector

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