PRES Pennsylvania Real Estate Salesperson Examination - 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: An appraiser gives an opinion of the most probable price a property should bring in a fair, open-market sale. Which term names this opinion?

Market value

Market price

Cost

Assessed value

Question 2: A homeowner spends a large sum installing a pool, but it adds far less to what buyers will pay. This gap illustrates the difference between which two concepts?

Price and value

Demand and utility

Assessment and millage

Cost and value

Question 3: Demand, utility, scarcity, and transferability are remembered by the word DUST. What do these four together describe?

The elements of value

The steps of an appraisal

The principles of value

The approaches to value

Question 4: A property has a clouded title that cannot be conveyed without serious legal impediment. Which element of value is missing here?

Utility

Scarcity

Transferability

Demand

Question 5: An owner needs a value figure only to set hazard-insurance coverage on the structure, not the land. Which type of value applies?

Investment value

Assessed value

Salvage value

Insurable value

Question 6: An aging house sits on land zoned for retail, and the site is worth most as a store location. Which principle directs valuing it for that use?

Highest and best use

Conformity

Regression

Substitution

Question 7: Buyers pay more for a home today because a new transit line is expected to open nearby next year. Which principle explains this?

Contribution

Conformity

Anticipation

Competition

Question 8: A modest house gains value because it sits among larger, higher-priced homes on the block. Which principle describes this upward pull?

Regression

Balance

Change

Progression

Question 9: A developer buys three adjoining lots and combines them, and the merged tract is worth more than the sum of the separate parcels. What is this increment called?

Plottage

Assemblage

Accretion

Contribution

Question 10: A buyer will pay no more for a home than the cost of acquiring an equally desirable substitute. Which principle is at work, and which underlies all three approaches?

Anticipation

Balance

Substitution

Conformity

Question 11: An appraiser may not accept a fee that depends on reaching a particular value. What core quality is this rule meant to protect?

The lender's profit

The agent's commission

The buyer's financing

The appraiser's independence

Question 12: A licensee prepares an estimate to help a seller set a listing price, comparing recent solds, active listings, and expired listings. What is this called?

A comparative market analysis

An appraisal

A USPAP report

An evaluation

Question 13: Which document is the appraisal profession's rulebook of ethics and methods that every appraiser must follow?

RESPA

USPAP

Regulation Z

RELRA

Question 14: Federal law requires that the body credentialing appraisers be separate from the agency licensing salespersons. In Pennsylvania, which board credentials appraisers?

The State Real Estate Commission

The Recorder of Deeds

The Board of Certified Real Estate Appraisers

The Insurance Department

Question 15: A licensee believes the home will appraise low and urges the appraiser to raise the value to match the contract price. What does appraiser independence prohibit here?

Providing recent comparable sales

Attending the inspection

Requesting a copy of the report

Pressuring the appraiser toward a value

Question 16: An appraiser values a typical single-family home in an active neighborhood with many recent sales. Which approach generally leads?

The sales comparison approach

The cost approach

The income approach

The gross income multiplier

Question 17: An appraiser must value a church, a property that rarely sells and produces no income. Which approach is most appropriate?

The sales comparison approach

The cost approach

The income approach

The gross rent multiplier

Question 18: When adjusting in the sales comparison approach, a feature's value is added to or subtracted from which property?

The subject property

The listing price

The comparable property

The assessed value

Question 19: An income property earns rent that an investor buys for its return. Which approach is the primary method for valuing it?

The cost approach

The sales comparison approach

The square-foot method

The income approach

Question 20: After developing several value indications, an appraiser weighs them by reliability to reach one final opinion. What is this step called, and is it averaging?

Reconciliation, and it is not averaging

Capitalization, done by averaging

Depreciation, and it is averaging

Equalization, done by averaging

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