1.7

Question 0

True or False:

The buyer controls price, product, and terms.

Answer 0

False

Question 1

The market chiefly determines the ________ of the home.

Answer 1

value

Question 2

The cap rate is the percent of _______ compared to the total cost of a real estate investment property.

Answer 2

net operating income

Question 3

______ involves dividing the comparables into two groups, a high price group and a low price group.

Answer 3

Bracketing

Question 4

When determining value on rental properties, the ________ (GRM) technique can only be used if all the expenses are uniform.

Answer 4

Gross Rent Multiplier

Question 5

Sellers often _________ their properties because of the fear of being taken advantage of by a shrewd agent or buyer.

Answer 5

overprice

Question 6

Agents should approach the pricing conversation by _______ with the seller’s need for a positive conclusion.

Answer 6

empathizing

Question 7

True or False:
Agents should AVOID approaching the pricing conversation by recognizing and empathizing with the seller’s need for a positive conclusion.

Answer 7

False

Question 8

Asking “Do you think a buyer would pay that much more because you re-roofed the house?” is a/an ________ question.

Answer 8

close-ended

Question 9

True or False: ALL agents specialize in particular markets, price ranges, or house styles.

Answer 9

False

Question 10

_________ Income is the cash remaining after subtracting operating expenses.

Answer 10

Net Operating

Question 11

The seller controls the three most powerful levers that affect marketability: _________, product and terms.

Answer 11

Price

Question 12

Conclusions about pricing should be drawn from property _______, not from seller assumptions or your off-handed opinion.

Answer 12

comparisons

Question 13

When justifying the market analysis an agent should keep guiding the conversation back to the __________.

Answer 13

facts or comparables

Question 14

Evaluating investment properties by comparing capitalization rates is known as the ________ approach to establishing value.

Answer 14

income

Question 15

Adjusting for amenities (decks, additions, etc.) when preparing comparables for a CMA falls under the appraisal principle of _________.

Answer 15

contribution

Question 16

Evaluating market value combines ________ with science.

Answer 16

art

Question 17

The gross multiplier technique is only useful when all _______ are uniform.

Answer 17

expenses