[ RESLE 5 ] Philippine Real Estate Service Licensure Exam Reviewer V

Philippine Real Estate Service Licensure Exam Practice Test

Instructions:

Please answer each question to the best of your ability. Each question is multiple choice, and only one answer per question is correct. Select the most appropriate answer from the options provided. There are 20 questions in total.

When you have completed all questions, click the "Submit" button at the bottom of the page to see your score. Good luck!

An appraiser in Metro Manila is tasked with valuing a property that has undergone significant renovations. What should be their first step?

A) Assess the extent and quality of the renovations made.
B) Use the previous property value as a benchmark.
C) Ignore the renovations and focus on the neighborhood.
D) Estimate value based on the owner's purchase price.

An appraiser is comparing two similar properties in Cebu but notices one has a significantly larger lot size. How should this be accounted for in the appraisal?

A) Adjust the value based on the difference in lot size using a per square meter approach.
B) Treat both properties as identical regardless of size.
C) Base the appraisal solely on the structures.
D) Assume the larger lot does not add any value.

A property in Quezon City has unique features such as a swimming pool and landscaped gardens. How should these features be factored into the appraisal?

A) Research the market to determine how much similar features contribute to value.
B) Assume they add no value since they are subjective.
C) Deduct value because they may require maintenance.
D) Use arbitrary values for such features without research.

An appraiser is evaluating a commercial property that has experienced fluctuating occupancy rates. What is the best approach to determine its value?

A) Analyze historical income data and current market conditions.
B) Only focus on the current occupancy rate.
C) Ignore the income and focus solely on comparable sales.
D) Use the property’s last sale price as the valuation.

A real estate appraiser is using the sales comparison approach in a rural area. What unique factor should they consider?

A) The scarcity of similar sales in that specific location.
B) Only the properties sold in urban areas.
C) The average price of all properties in the country.
D) The features of unrelated properties.

A homeowner has made extensive green renovations, such as solar panels and rainwater harvesting systems. How should an appraiser evaluate these improvements?

A) Research local market trends regarding energy-efficient properties to assess value impact.
B) Assume they add no value because they are personal choices.
C) Value them based on the original installation cost.
D) Ignore their existence during the appraisal process.

An appraiser must adjust comparable sales for a property that has a larger square footage than the comparables. What is the appropriate adjustment method?

A) Determine a price per square foot and adjust accordingly.
B) Assume larger square footage is less desirable.
C) Use the original sale prices without adjustments.
D) Ignore square footage entirely.

A property in a high-demand area is appraised at a lower value than expected. What could be a potential reason?

A) Recent sales of similar properties at lower prices.
B) The appraiser's personal bias against the area.
C) High rental yields in the area.
D) The property owner's expectations.

An appraiser uses the cost approach for a new commercial building. What key component should they include in their analysis?

A) The estimated reproduction or replacement cost of the building.
B) Only the historical costs incurred during construction.
C) The future market value.
D) Opinions from potential tenants.

An appraiser is tasked with valuing a mixed-use property. What unique considerations should they keep in mind?

A) The different income streams generated from various uses of the property.
B) Treating it like a single-use property for simplicity.
C) Ignoring the commercial aspect entirely.
D) Focusing solely on residential market trends.

A real estate appraiser in Baguio is analyzing the impact of local infrastructure projects on property values. What should be their approach?

A) Assess how the projects will improve accessibility and desirability.
B) Assume infrastructure changes will have no effect.
C) Evaluate only current market conditions.
D) Focus solely on the property itself.

An appraiser is reviewing a property with a unique architectural style. What should they ensure when using comparables?

A) Find comparable properties that share similar design features and appeal.
B) Compare it to standard properties without unique features.
C) Ignore the design completely in favor of location.
D) Only look at properties from different areas.

An appraiser is conducting a feasibility study for a proposed real estate development. What is a critical aspect of this study?

A) Evaluating potential return on investment based on market demand.
B) Using historical data alone without considering future trends.
C) Ignoring local zoning laws and regulations.
D) Focusing solely on the initial costs of development.

A real estate appraiser is reviewing a property with environmental concerns. How should this impact their valuation process?

A) Assess the potential cost of remediation and its impact on value.
B) Assume it adds no value.
C) Focus solely on the property's historical value.
D) Ignore environmental factors as they are subjective.

An appraiser in Davao is tasked with determining the market value of a property in a rapidly changing neighborhood. What should they consider?

A) The current market trends and projected future developments.
B) Only the historical sale prices of properties.
C) The opinions of local residents only.
D) The opinions of potential investors only.

A property appraiser must account for economic obsolescence when valuing a factory. What is an example of this?

A) A nearby factory closing down due to market shifts.
B) The age of the building.
C) The condition of the machinery.
D) Cosmetic updates made to the property.

An appraiser is valuing a property with significant deferred maintenance. What is the best approach?

A) Deduct the estimated cost of repairs from the market value.
B) Ignore the condition entirely.
C) Value it based on the previous sale price.
D) Compare it only to new properties.

An appraiser is analyzing a neighborhood that has recently undergone gentrification. What should they assess?

A) The increase in property values and demographic changes.
B) Assume it has no impact on property values.
C) Focus only on past property values.
D) Ignore the changes in neighborhood amenities.

A real estate appraiser is using a discounted cash flow analysis for a rental property. What is a key factor to include?

A) The expected rental income over time.
B) The last rental price charged.
C) The owner's expectations for profit.
D) The value of the land only.

An appraiser is tasked with valuing a historical property. What is a crucial consideration in their analysis?

A) The property's historical significance and preservation requirements.
B) The property's last sale price only.
C) Treat it like any other property.
D) Focus on the current market trends alone.

Result

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