Texas Principles of Real Estate II Exam | Complete with Questions and Verified Answers | Grade A+| 2024 / 2025 Newly Updated
Question:
Tim and Sue have the smallest home in a sought-after neighborhood. The value of their home is increased because of the higher value of the other homes in the neighborhood. This is an example of what principle?
Answer:
progression
Question:
What aspects of a property site should a licensee consider when collecting information about a seller's property for analysis?
Answer:
Shape Landscape Position and orientation
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Question:
What is an example of a pitfall of overpricing?
Answer:
A home failing to sell and becoming an expired listing
Question:
What are the most reliable comparables to collect for a CMA?
Answer:
Sold homes that are most similar to the seller's property
Question:
A licensee has a listing with very close matching pending sale comparables.Using the comparables what should a licensee do to see if they have a good price for the listing?
Answer:
Contact the listing agent on the pending sale for price and sale information
Question:
When an appraiser is looking for comparables that have recently sold, they should look at similar properties that have sold within the last how many months?
Answer:
Three (3) to six (6) months 2 / 4
Question:
When doing a CMA, what is the minimum number of sold properties that should be included?
Answer:
three
Question:
Why should a licensee keep in mind that the information on pending sales is not as reliable as on sold homes?
Answer:
The sale price could even be lower or higher than the listing price.
Question:
Where can a licensee find most of the information they need to do a good analysis?
Answer:
From the multiple listing service (MLS)
Question:
For recently sold properties, the licensee should also be concerned with what?
Answer:
Date of the sale Financing TermsSale conditions 3 / 4
Question:
If a licensee has prepared a CMA, they make a comparison based on location, physical characteristics sale date and financing terms. The licensee will use the differences in these factors to make small adjustments to what?
Answer:
Sale price or the listing price.
Question:
When completing the CMA a licensee has a comparable that has a feature the seller's property does NOT have—for example, an extra bedroom—what adjustment must be made on the comparable?
Answer:
If a comparable has a feature that the seller's property does not have, subtract the value of that feature from the price of the comparable.
Question:
There are several factors that determine the value of a home at any given point
in time, including:
Answer:
Location Property condition Improvements Supply and demand Financing terms
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