NRES - Nevada Real Estate Salesperson Exam

Question 21: An appraiser values a single-family home by comparing it with several similar homes that recently sold nearby, adjusting for the differences between each comparable and the subject property. Which of the three approaches to value is being used in this method?

An assemblage analysis

A market rent survey

The sales comparison approach

A feasibility study

Question 22: For which type of property is valuing by comparison with recent nearby sales usually the most reliable of the three approaches, because such transactions are plentiful and the intangible benefits of ownership are hard to measure any other way?

A large downtown office tower

A public school building

A church or museum

A single-family home

Question 23: When an appraiser values a subject property by comparing it with recently sold properties, a comparable has a desirable feature that the subject property lacks. To reflect this difference correctly, how should the appraiser treat the comparable's sale price for that feature?

Add value to the subject property

Subtract value from the comparable's price

Ignore the difference entirely

Add value to the comparable's price

Question 24: An appraiser values a property by estimating the land value, adding the current cost to construct the building new, and then subtracting the accrued depreciation on the improvements. Which of the three approaches to value follows these particular steps?

A market rent survey

An assemblage analysis

A feasibility study

The cost approach

Question 25: For which kind of property is the cost approach usually the most appropriate to use, because there are seldom enough comparable sales and the property does not ordinarily produce income to value it by the other two methods?

A special-purpose building such as a school

A typical suburban tract home

A leased apartment building

A downtown retail store

Question 26: An appraiser values an apartment building by dividing its annual net operating income by a rate of return that investors expect for such property. Which of the three approaches to value relies on this relationship between a property's income and a rate?

A market rent survey

A feasibility study

An assemblage analysis

The income approach

Question 27: For appraisal purposes, the loss in value of an improvement is divided into three classes according to cause, and one of those classes is caused by negative influences located entirely off the subject property itself. What is that off-site class of value loss called?

External obsolescence

Accrued equity

Deferred maintenance

A capital gain

Question 28: A home loses value because a polluting factory is built nearby, a negative influence the property owner cannot remove by spending money on the home itself. Depreciation caused by such off-site forces is generally regarded as which of the following?

Curable by simple repairs

A form of accrued equity

Reversible through remodeling

Always incurable

Question 29: After applying all three approaches to a property, an appraiser gets three different indications of value and must weigh them to reach a single final opinion of value. Which of the following BEST describes how this final step is properly performed?

By taking a simple average

By always choosing the highest figure

By weighting the approaches by reliability

By always choosing the lowest figure

Question 30: In the simplest method of estimating depreciation, an appraiser assumes an improvement loses value at an even rate over the number of years it is expected to remain useful for its intended purpose. What is that expected useful period called?

The redemption period

The amortization term

A statutory holding period

The economic life

Question 31: Real estate math requires memorizing certain land-measurement conversions that cannot be looked up during the examination. One of the most important is the number of square feet contained in a single acre of land. How many square feet are in one acre?

43,560 square feet

5,280 square feet

36,000 square feet

640 square feet

Question 32: Among the land-measurement conversions a candidate must commit to memory is the number of linear feet contained in one mile, which appears in distance and boundary problems on the examination. How many feet are there in one mile?

43,560 feet

1,760 feet

3,280 feet

5,280 feet

Question 33: In the rectangular survey system, a section is one square mile and serves as a basic unit of land description. Candidates must memorize how many acres a full section contains for area problems on the examination. How many acres are in one section?

160 acres

640 acres

320 acres

36 acres

Question 34: To find the area of a rectangular lot for use in a land-measurement problem, a candidate combines two of its dimensions with a single operation. Which pair of measurements is multiplied together to find the area of a rectangular parcel?

Length multiplied by width

Length plus width

Width divided by depth

Perimeter multiplied by depth

Question 35: In the income approach, an appraiser converts a property's annual net operating income into an estimate of value using a rate of return demanded by investors for that class of property. Value is found by dividing net operating income by which of the following?

The loan-to-value ratio

The capitalization rate

The mortgage interest rate

The debt coverage ratio

Question 36: For a one- to four-unit residential rental, an appraiser derives a rough factor for approximating value by dividing a comparable property's sales price by its monthly gross rent. What is the factor derived in this particular way called?

The gross rent multiplier

The loan-to-value ratio

The debt coverage ratio

The mortgage interest rate

Question 37: An appraiser valuing a property with five or more units uses a multiplier built from a yearly income figure rather than from a monthly one. For such a larger income property, the sales price is divided by which yearly figure to derive that multiplier?

The net operating income

The tenants' monthly wages

The annual gross income

The sale commission

Question 38: An appraiser knows a property's net operating income and the capitalization rate the market demands, and needs to solve for the property's value. Using the standard income relationship among income, rate, and value, how is value obtained from these two figures?

Multiply the income by the rate

Add the income and the rate

Multiply the rate by itself

Divide the income by the rate

Question 39: In the income approach, an appraiser reaches net operating income by taking the effective gross income and then subtracting the property's ordinary operating expenses. Which of the following items is expressly NOT treated as an operating expense in this particular calculation?

Property management costs

Real estate taxes

The mortgage principal and interest

Insurance premiums

Question 40: In a typical listing, a broker's commission is figured as an agreed percentage applied to a particular dollar figure from the completed transaction. To what amount is the commission percentage normally applied to calculate the fee the broker earns?

The property's final sales price

The buyer's annual income

The property's assessed value

The outstanding loan balance

NRES Nevada Real Estate Salesperson Exam - Set 3 - Part 2

Question 21: An appraiser values a single-family home by comparing it with several similar homes that recently sold nearby, adjusting for the differences between each comparable and the subject property. Which of the three approaches to value is being used in this method?

Question 22: For which type of property is valuing by comparison with recent nearby sales usually the most reliable of the three approaches, because such transactions are plentiful and the intangible benefits of ownership are hard to measure any other way?

Question 23: When an appraiser values a subject property by comparing it with recently sold properties, a comparable has a desirable feature that the subject property lacks. To reflect this difference correctly, how should the appraiser treat the comparable's sale price for that feature?

Question 24: An appraiser values a property by estimating the land value, adding the current cost to construct the building new, and then subtracting the accrued depreciation on the improvements. Which of the three approaches to value follows these particular steps?

Question 25: For which kind of property is the cost approach usually the most appropriate to use, because there are seldom enough comparable sales and the property does not ordinarily produce income to value it by the other two methods?

Question 26: An appraiser values an apartment building by dividing its annual net operating income by a rate of return that investors expect for such property. Which of the three approaches to value relies on this relationship between a property's income and a rate?

Question 27: For appraisal purposes, the loss in value of an improvement is divided into three classes according to cause, and one of those classes is caused by negative influences located entirely off the subject property itself. What is that off-site class of value loss called?

Question 28: A home loses value because a polluting factory is built nearby, a negative influence the property owner cannot remove by spending money on the home itself. Depreciation caused by such off-site forces is generally regarded as which of the following?

Question 29: After applying all three approaches to a property, an appraiser gets three different indications of value and must weigh them to reach a single final opinion of value. Which of the following BEST describes how this final step is properly performed?

Question 30: In the simplest method of estimating depreciation, an appraiser assumes an improvement loses value at an even rate over the number of years it is expected to remain useful for its intended purpose. What is that expected useful period called?

Question 31: Real estate math requires memorizing certain land-measurement conversions that cannot be looked up during the examination. One of the most important is the number of square feet contained in a single acre of land. How many square feet are in one acre?

Question 32: Among the land-measurement conversions a candidate must commit to memory is the number of linear feet contained in one mile, which appears in distance and boundary problems on the examination. How many feet are there in one mile?

Question 33: In the rectangular survey system, a section is one square mile and serves as a basic unit of land description. Candidates must memorize how many acres a full section contains for area problems on the examination. How many acres are in one section?

Question 34: To find the area of a rectangular lot for use in a land-measurement problem, a candidate combines two of its dimensions with a single operation. Which pair of measurements is multiplied together to find the area of a rectangular parcel?

Question 35: In the income approach, an appraiser converts a property's annual net operating income into an estimate of value using a rate of return demanded by investors for that class of property. Value is found by dividing net operating income by which of the following?

Question 36: For a one- to four-unit residential rental, an appraiser derives a rough factor for approximating value by dividing a comparable property's sales price by its monthly gross rent. What is the factor derived in this particular way called?

Question 37: An appraiser valuing a property with five or more units uses a multiplier built from a yearly income figure rather than from a monthly one. For such a larger income property, the sales price is divided by which yearly figure to derive that multiplier?

Question 38: An appraiser knows a property's net operating income and the capitalization rate the market demands, and needs to solve for the property's value. Using the standard income relationship among income, rate, and value, how is value obtained from these two figures?

Question 39: In the income approach, an appraiser reaches net operating income by taking the effective gross income and then subtracting the property's ordinary operating expenses. Which of the following items is expressly NOT treated as an operating expense in this particular calculation?

Question 40: In a typical listing, a broker's commission is figured as an agreed percentage applied to a particular dollar figure from the completed transaction. To what amount is the commission percentage normally applied to calculate the fee the broker earns?

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