RLE 83 Final Prep Ch 10

Front

The price a property would most likely bring if it were exposed for sale in the open market for a reasonable period of time is the property’s

Back

market value.

Front

On a financial statement, liabilities include all of the following items except: loan balances, unpaid taxes, insurance premiums due, notes receivable.

Back

notes receivable.

Front

Net worth is described as

Back

assets less liabilities.

Front

In determining the net income for an apartment property, all of the following expenses would be deducted from the gross income except: interest charges, property taxes, management fees, insurance premiums.

Back

interest charges.

Front

The market value for a specific property is the price it would bring if it were exposed for sale

Back

in the open market for a reasonable period of time.

Front

Which method is used to estimate a property’s value from an examination of other similar properties’ sale prices?

Back

Direct sales comparison approach

Front

In the direct sales comparison approach, a comp that sold two years ago would probably not be used because of

Back

changing economic circumstances.

Front

Which method is used to estimate a property’s value from an examination of its component parts?

Back

Cost approach

Front

The rule of substitution concerns the prices a reasonable person would pay for

Back

new and used property.

Front

Applicants for conventional loans should not be spending more than 28% of their gross monthly income on principal, interest, homeowner’s association fees, insurance and

Back

taxes.