National Section - Chapter 2

Question 1

Area of a rectangle

Answer 1

width x depth / length

Question 2

Area of a triangle

Answer 2

base x height / 2

Question 3

Area of a trapezoid

Answer 3

(L + L / 2) x H

Question 4

1 Acre = ? SQFT

Answer 4

43,560

Question 5

Width of the lot and the expanse of road exposure that a lot offers

Answer 5

front footage

Question 6

Heated and cooled square footage of a structure that is measured using the outside dimensions

Answer 6

Gross Living Area

Question 7

GLA excludes what areas?

Answer 7

garage, carports, decks, patios

Question 8

Amount of space local zoning regulations require between the property line and any improvements

Answer 8

setbacks

Question 9

Type of legal description that describes a parcel of land using a set of fractions and the corresponding section, township and range numbers

Answer 9

rectangular/ government survey

Question 10

Square tract of land used in the rectangular survey method

Answer 10

section

Question 11

1 section measurements

Answer 11

1 mile wide and 1 mile deep (contains 640 acres)

Question 12

Volume

Answer 12

H (or D) x W x L

Question 13

Tool agents use to determine listing amount on a home

Answer 13

Comparative Market Analysis

Question 14

Appraisal method for single family or duplexes based on the gross monthly rent

Answer 14

Gross Rent Multiplier

Question 15

Method of appraising income producing properties based on the annual gross income

Answer 15

gross income multiplier

Question 16

Value method based on the principle of substitution

Answer 16

cost approach formula

Question 17

Decrease in value due to physical deterioration, functional, or economic obsolescence

Answer 17

depreciation

Question 18

Determines the rate of return considered to be a reasonable return on investments - given the risk

Answer 18

income capitalization approach

Question 19

approach to calculating value which is the gross income less all operating expense

Answer 19

NOI

Question 20

annual amount of money someone pays to borrow money

Answer 20

annual interest

Question 21

Debt paid off over a period of time with periodic payments

Answer 21

amortized loan

Question 22

Loan that pays down the interest owed, none of the principal

Answer 22

interest only loan

Question 23

number expressed as a percentage or decimal that calculates a mortgage payment which would retire the loan in the expressed time allotted or term of the loan

Answer 23

loan constants

Question 24

shows the relationship b between the amount borrowed and the appraised, market, or assessed value of the property

Answer 24

LTV ratio

Question 25

Increase in value over time

Answer 25

appreciation

Question 26

percentage relationship between the investment price and the returns on that investment

Answer 26

rate of return

Question 27

value of real estate - any liens against the real property

Answer 27

equity

Question 28

gross potential income - vacancy and collections and other income - all operating expenses

Answer 28

NOI