OKRES - Oklahoma Real Estate Salesperson Exam

Question 1: A lender needs an independent professional to study a property and produce a supported estimate of what it is worth, using approved methods and quantifiable market data. The professional is paid a flat fee rather than a commission. What is this work product called?

A comparative market analysis

A broker's price opinion

A title commitment

An appraisal

Question 2: An appraisal report defines a key term as the most probable price a property should bring in a competitive and open market, with a knowledgeable buyer and seller, neither under pressure, and reasonable market exposure. Which term does this careful definition describe?

Market price

Market value

Assessed value

Replacement cost

Question 3: An instructor stresses that one figure is an opinion supported by analysis of comparable sales and market data, while a second is simply the amount actually asked, offered, or paid in a transaction. Which pairing correctly matches these two figures?

Value is opinion; price is paid

Price is opinion; value is paid

Both mean the same thing

Value is always higher than price

Question 4: A homeowner spends a large sum installing an in-ground swimming pool and assumes the property's value will rise by exactly that amount. An appraiser cautions that this often is not so. Which principle best explains why the spending may not equal the added value?

Cost always equals market value

Value is set by the seller

Cost does not necessarily equal value

Price and cost are identical

Question 5: For a property to have value in the market, it must possess four characteristics often recalled by a memory aid: demand backed by purchasing power, usefulness, a finite supply, and the ability to convey ownership. Which term names the finite-supply characteristic?

Demand

Utility

Transferability

Scarcity

Question 6: An appraiser values a typical suburban home by studying recent sales of similar nearby homes and adjusting each comparable for differences from the subject, such as an extra bedroom or a larger lot. Which approach to value is the appraiser primarily using here?

The cost approach

The sales comparison approach

The income approach

The gross rent multiplier method

Question 7: An appraiser values a newly built public library, a special-purpose building that rarely sells and produces no rental income. She estimates the land value, adds the cost to reproduce the structure, then subtracts depreciation. Which approach to value is she applying?

The sales comparison approach

The income approach

The cost approach

The gross income multiplier method

Question 8: An investor is buying an apartment building and wants an appraisal based mainly on the rental income the property produces after operating expenses. The appraiser capitalizes that net income to reach a value figure. Which approach to value is being used?

The income approach

The cost approach

The sales comparison approach

The plottage method

Question 9: When valuing an ordinary owner-occupied single-family home in an active neighborhood, an appraiser must decide which approach to weight most heavily in reaching the final opinion. Which approach is generally given the greatest weight for such a residence?

The income approach

The cost approach

The gross rent multiplier

The sales comparison approach

Question 10: A church, a school, and a fire station share a trait that complicates valuation: they seldom change hands and earn no rent, so comparable sales and income data are scarce. Which approach to value is typically most reliable for these special-purpose properties?

The income approach

The sales comparison approach

The cost approach

The gross income multiplier

Question 11: A commercial office building leased to several business tenants is being valued for a purchase loan. The appraiser wants the method that most directly reflects the building's ability to generate a return for an investor. Which approach best fits that goal?

The income approach

The cost approach

The sales comparison approach

The plottage principle

Question 12: After completing more than one approach to value, an appraiser must arrive at a single final opinion. A trainee suggests simply averaging the indicated values. Which of the following best describes the correct final step in the appraisal process?

Average the three approaches

Reconciliation by weighing each approach

Always use the highest value

Adopt the cost approach automatically

Question 13: An appraiser evaluates a downtown corner lot and asks which use would be legally permitted, physically possible, financially feasible, and maximally productive, yielding the greatest return to the land. Which appraisal concept requires meeting all four of these tests at once?

The principle of conformity

The principle of substitution

Plottage value

Highest and best use

Question 14: An appraiser notes that an informed buyer will pay no more for a home than the cost of acquiring an equally desirable substitute property without undue delay. This idea underlies the sales comparison approach. Which principle of value does it express?

Substitution

Anticipation

Regression

Contribution

Question 15: Home values in a neighborhood begin rising sharply after a major employer announces it will build a large campus nearby, even before any construction starts. The expectation of future benefit is driving current value. Which principle of value does this illustrate?

Conformity

Regression

Anticipation

Substitution

Question 16: In an established neighborhood of similarly sized mid-century homes, an owner builds an enormous, ultramodern mansion that clashes with everything around it. The oversized home fails to reach its full potential value. Which principle of value best explains this outcome?

Anticipation

Conformity

Plottage

Contribution

Question 17: An owner debates whether remodeling a dated kitchen will pay off, since the improvement's effect on the whole property's value, not its cost, is what matters. An appraiser evaluates the change in the entire parcel's worth. Which principle of value governs this analysis?

Regression

Anticipation

Conformity

Contribution

Question 18: A large, luxurious, well-maintained home sits in a block of small, modest, older houses. Appraisers expect its value to be dragged toward the range of the lesser homes surrounding it. Which principle of value describes this downward pull on the finer property?

Regression

Progression

Contribution

Anticipation

Question 19: A modest, older cottage happens to sit among large, expensive, well-kept homes on a prestigious street. Its value tends to be lifted higher than it would be in a block of similar cottages. Which principle of value explains this upward influence?

Regression

Contribution

Progression

Conformity

Question 20: A developer combines two adjacent lots, each worth a certain amount separately, into one larger site whose combined value exceeds the sum of the two individual parcels. What is the term for the increase in value produced by this successful combination?

Assemblage

Plottage

Progression

Contribution

OKRES Oklahoma Real Estate Salesperson Exam - Set 3 - Part 1

Question 1: A lender needs an independent professional to study a property and produce a supported estimate of what it is worth, using approved methods and quantifiable market data. The professional is paid a flat fee rather than a commission. What is this work product called?

Question 2: An appraisal report defines a key term as the most probable price a property should bring in a competitive and open market, with a knowledgeable buyer and seller, neither under pressure, and reasonable market exposure. Which term does this careful definition describe?

Question 3: An instructor stresses that one figure is an opinion supported by analysis of comparable sales and market data, while a second is simply the amount actually asked, offered, or paid in a transaction. Which pairing correctly matches these two figures?

Question 4: A homeowner spends a large sum installing an in-ground swimming pool and assumes the property's value will rise by exactly that amount. An appraiser cautions that this often is not so. Which principle best explains why the spending may not equal the added value?

Question 5: For a property to have value in the market, it must possess four characteristics often recalled by a memory aid: demand backed by purchasing power, usefulness, a finite supply, and the ability to convey ownership. Which term names the finite-supply characteristic?

Question 6: An appraiser values a typical suburban home by studying recent sales of similar nearby homes and adjusting each comparable for differences from the subject, such as an extra bedroom or a larger lot. Which approach to value is the appraiser primarily using here?

Question 7: An appraiser values a newly built public library, a special-purpose building that rarely sells and produces no rental income. She estimates the land value, adds the cost to reproduce the structure, then subtracts depreciation. Which approach to value is she applying?

Question 8: An investor is buying an apartment building and wants an appraisal based mainly on the rental income the property produces after operating expenses. The appraiser capitalizes that net income to reach a value figure. Which approach to value is being used?

Question 9: When valuing an ordinary owner-occupied single-family home in an active neighborhood, an appraiser must decide which approach to weight most heavily in reaching the final opinion. Which approach is generally given the greatest weight for such a residence?

Question 10: A church, a school, and a fire station share a trait that complicates valuation: they seldom change hands and earn no rent, so comparable sales and income data are scarce. Which approach to value is typically most reliable for these special-purpose properties?

Question 11: A commercial office building leased to several business tenants is being valued for a purchase loan. The appraiser wants the method that most directly reflects the building's ability to generate a return for an investor. Which approach best fits that goal?

Question 12: After completing more than one approach to value, an appraiser must arrive at a single final opinion. A trainee suggests simply averaging the indicated values. Which of the following best describes the correct final step in the appraisal process?

Question 13: An appraiser evaluates a downtown corner lot and asks which use would be legally permitted, physically possible, financially feasible, and maximally productive, yielding the greatest return to the land. Which appraisal concept requires meeting all four of these tests at once?

Question 14: An appraiser notes that an informed buyer will pay no more for a home than the cost of acquiring an equally desirable substitute property without undue delay. This idea underlies the sales comparison approach. Which principle of value does it express?

Question 15: Home values in a neighborhood begin rising sharply after a major employer announces it will build a large campus nearby, even before any construction starts. The expectation of future benefit is driving current value. Which principle of value does this illustrate?

Question 16: In an established neighborhood of similarly sized mid-century homes, an owner builds an enormous, ultramodern mansion that clashes with everything around it. The oversized home fails to reach its full potential value. Which principle of value best explains this outcome?

Question 17: An owner debates whether remodeling a dated kitchen will pay off, since the improvement's effect on the whole property's value, not its cost, is what matters. An appraiser evaluates the change in the entire parcel's worth. Which principle of value governs this analysis?

Question 18: A large, luxurious, well-maintained home sits in a block of small, modest, older houses. Appraisers expect its value to be dragged toward the range of the lesser homes surrounding it. Which principle of value describes this downward pull on the finer property?

Question 19: A modest, older cottage happens to sit among large, expensive, well-kept homes on a prestigious street. Its value tends to be lifted higher than it would be in a block of similar cottages. Which principle of value explains this upward influence?

Question 20: A developer combines two adjacent lots, each worth a certain amount separately, into one larger site whose combined value exceeds the sum of the two individual parcels. What is the term for the increase in value produced by this successful combination?

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