NRES - Nevada Real Estate Salesperson Exam

Question 1: A lender wants a trained, impartial professional to study a property and supportable market evidence and then state, using approved methods, what the property is worth for a loan decision. What is this supported professional opinion of a property's worth called?

A home inspection report

A listing agreement

An appraisal

A title commitment

Question 2: A federal law requires that an appraiser used in a federally related mortgage transaction be a person licensed or certified by the state where the appraiser practices, through an agency kept separate from the one licensing real estate agents. Which requirement does this describe?

State licensing or certification of the appraiser

Membership in a real estate brokerage

A passing home inspection

The seller's written approval

Question 3: A real estate professional prepares a report for a seller that studies recently sold, currently listed, and expired properties similar to the seller's home in order to suggest a reasonable listing price. This report, which is not a formal appraisal, is known as what?

A closing statement

A survey report

A home inspection report

A comparative market analysis

Question 4: A lender managing a home equity line wants a quick, less expensive estimate of a property's likely price from a real estate professional, but not a full appraisal, and the matter is not a federally related transaction that would require one. What is this estimate called?

A home warranty

A broker's price opinion

A survey report

A title commitment

Question 5: When conducting an appraisal, an appraiser must follow a set of nationally recognized standards of professional practice established by the Appraisal Standards Board of the Appraisal Foundation to govern how the work itself is done. What are these mandatory appraisal standards known as?

The Uniform Standards of Professional Appraisal Practice

The recorded subdivision plat

The multiple listing rules

A home inspection checklist

Question 6: For a property to have value in the market, it must possess four characteristics often remembered by an acronym: demand backed by purchasing power, usefulness, a scarce and limited quantity, and the ability to transfer ownership. Which acronym captures these four characteristics of value?

MARIA

PITT

PETE

DUST

Question 7: An appraiser seeks the most probable price a property should bring in a competitive and open market, with a willing buyer and seller each acting prudently and knowledgeably and without any undue pressure on either side. What is this supported price figure called?

Replacement cost new

The asking price

Market value

Deferred maintenance

Question 8: An appraiser distinguishes an opinion of value based on data analysis from the actual amount a property is asked, offered, or sold for in a real transaction between the parties. Which term names that actual asking, offering, or sale amount in a deal?

Replacement cost new

Accrued depreciation

The redemption period

Market price

Question 9: A homeowner spends a large sum installing a swimming pool and assumes the property's value has risen by that same amount as a direct result. Considering the relationship between the cost of an improvement and its effect on value, which of the following BEST states the likely result?

Value always rises by the exact cost

Cost and value are the same thing

Added value may fall short

The pool erases the home's value

Question 10: To reflect true market value, a sale should occur between a buyer and seller who are unrelated, each acting in their own interest, well informed about the property, and free of any undue pressure. What is a transaction meeting all of these conditions commonly called?

An arm's length transaction

A short sale

A foreclosure sale

An installment sale

Question 11: A neighborhood's home values climb after a major employer announces it will move to the area, because buyers expect future benefits from that coming change. Which principle of value holds that value is created by the expectation of future events?

Change

Anticipation

Competition

Progression

Question 12: In an established neighborhood of similarly sized mid-century homes, a huge, ultra-luxurious new house is built that clashes sharply with its neighbors and does not realize its full value. Which principle of value best explains this outcome for the new house?

Conformity

Change

Competition

Progression

Question 13: An appraiser evaluates how much a remodeled kitchen adds to the overall worth of a house, measuring the improvement by its effect on the value of the entire property rather than by what the remodel actually cost. Which principle of value governs this analysis?

Progression

Change

Competition

Contribution

Question 14: A large, luxurious, well-maintained house sits in a neighborhood of modest, smaller homes, and as a result its value is pulled down toward the range of the surrounding properties. Which principle of value explains this downward effect on the fine house?

Progression

Change

Regression

Competition

Question 15: A newer home suffers a loss in value because it has an outdated floor plan and only one bathroom for four bedrooms, a design flaw within the building that buyers find undesirable. This kind of value loss from an outdated design is best classified as what?

Deferred maintenance

Accrued equity

A capital gain

Functional obsolescence

Question 16: A buyer will pay no more for a home than it would cost to acquire an equally desirable and available substitute property nearby. This principle sets the upper limit of value and is the foundation of one valuation approach. Which principle is being described here?

Change

Competition

Substitution

Assemblage

Question 17: An appraiser identifies the single use of a parcel that is physically possible, legally permitted, financially feasible, and the most profitable, in order to value the land at its full potential. What is this most profitable permissible use called?

A nonconforming use

Adaptive reuse

Deferred maintenance

Highest and best use

Question 18: Two adjacent lots, each worth a certain amount separately, are combined under one owner into a single larger parcel whose total value exceeds the simple sum of the two individual lots. What is this increase in value gained from combining the parcels called?

Progression

Plottage

Accretion

Contribution to the whole

Question 19: In a town where many buyers compete for very few homes available for sale, prices rise; where many homes sit unsold and buyers are scarce, prices fall accordingly. Which principle of value describes this relationship between availability and buyer interest?

Change

Competition

Progression

Supply and demand

Question 20: An older building has lost value because of peeling paint, a worn roof, and general wear and tear from age and use on the structure itself. In appraisal, this class of value loss caused by ordinary wear and aging is called what?

Adaptive reuse

Physical deterioration

Accrued equity

A capital gain

NRES Nevada Real Estate Salesperson Exam - Set 3 - Part 1

Question 1: A lender wants a trained, impartial professional to study a property and supportable market evidence and then state, using approved methods, what the property is worth for a loan decision. What is this supported professional opinion of a property's worth called?

Question 2: A federal law requires that an appraiser used in a federally related mortgage transaction be a person licensed or certified by the state where the appraiser practices, through an agency kept separate from the one licensing real estate agents. Which requirement does this describe?

Question 3: A real estate professional prepares a report for a seller that studies recently sold, currently listed, and expired properties similar to the seller's home in order to suggest a reasonable listing price. This report, which is not a formal appraisal, is known as what?

Question 4: A lender managing a home equity line wants a quick, less expensive estimate of a property's likely price from a real estate professional, but not a full appraisal, and the matter is not a federally related transaction that would require one. What is this estimate called?

Question 5: When conducting an appraisal, an appraiser must follow a set of nationally recognized standards of professional practice established by the Appraisal Standards Board of the Appraisal Foundation to govern how the work itself is done. What are these mandatory appraisal standards known as?

Question 7: An appraiser seeks the most probable price a property should bring in a competitive and open market, with a willing buyer and seller each acting prudently and knowledgeably and without any undue pressure on either side. What is this supported price figure called?

Question 8: An appraiser distinguishes an opinion of value based on data analysis from the actual amount a property is asked, offered, or sold for in a real transaction between the parties. Which term names that actual asking, offering, or sale amount in a deal?

Question 9: A homeowner spends a large sum installing a swimming pool and assumes the property's value has risen by that same amount as a direct result. Considering the relationship between the cost of an improvement and its effect on value, which of the following BEST states the likely result?

Question 10: To reflect true market value, a sale should occur between a buyer and seller who are unrelated, each acting in their own interest, well informed about the property, and free of any undue pressure. What is a transaction meeting all of these conditions commonly called?

Question 11: A neighborhood's home values climb after a major employer announces it will move to the area, because buyers expect future benefits from that coming change. Which principle of value holds that value is created by the expectation of future events?

Question 12: In an established neighborhood of similarly sized mid-century homes, a huge, ultra-luxurious new house is built that clashes sharply with its neighbors and does not realize its full value. Which principle of value best explains this outcome for the new house?

Question 13: An appraiser evaluates how much a remodeled kitchen adds to the overall worth of a house, measuring the improvement by its effect on the value of the entire property rather than by what the remodel actually cost. Which principle of value governs this analysis?

Question 14: A large, luxurious, well-maintained house sits in a neighborhood of modest, smaller homes, and as a result its value is pulled down toward the range of the surrounding properties. Which principle of value explains this downward effect on the fine house?

Question 15: A newer home suffers a loss in value because it has an outdated floor plan and only one bathroom for four bedrooms, a design flaw within the building that buyers find undesirable. This kind of value loss from an outdated design is best classified as what?

Question 16: A buyer will pay no more for a home than it would cost to acquire an equally desirable and available substitute property nearby. This principle sets the upper limit of value and is the foundation of one valuation approach. Which principle is being described here?

Question 17: An appraiser identifies the single use of a parcel that is physically possible, legally permitted, financially feasible, and the most profitable, in order to value the land at its full potential. What is this most profitable permissible use called?

Question 18: Two adjacent lots, each worth a certain amount separately, are combined under one owner into a single larger parcel whose total value exceeds the simple sum of the two individual lots. What is this increase in value gained from combining the parcels called?

Question 19: In a town where many buyers compete for very few homes available for sale, prices rise; where many homes sit unsold and buyers are scarce, prices fall accordingly. Which principle of value describes this relationship between availability and buyer interest?

Question 20: An older building has lost value because of peeling paint, a worn roof, and general wear and tear from age and use on the structure itself. In appraisal, this class of value loss caused by ordinary wear and aging is called what?

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