Houtan HormozianExpert on Real Estate, Finance and PropTech

CRESTICO - Question of the day - 02-24-2025

24 Feb 2025 · 1 min

Watch on YouTube

1:25

This content was created by Houtan Hormozian. This content was uploaded by Houtan Hormozian. This is a YouTube video titled "CRESTICO - Question of the day - 02-24-2025" (published February 24, 2025). The excerpt is an educational Q&A segment in English—likely real estate exam/continuing-education prep—where a single speaker poses multiple-choice questions and gives answers with explanations. Covered topics include exclusive agency listing commission rules (Q1: seller finds buyer — answer B: nothing) and appraisal valuation methods for public buildings (Q2: use the cost/replacement approach — answer D).

Chapters

Question of the day. Question number 1: Under an exclusive agency listing, a broker advertises a home for sale. The owner finds a buyer and sells the home prior to the expiration of the listing. The broker is entitled to: A. Expenses only. B. Nothing. C. The full commission. D. Half the commission. The answer is B. Nothing. Since the listing was an exclusive agency listing, the seller may find their own buyer without paying a commission. This is different than an exclusive authorization and right-to-sell listing, in which the listing broker is guaranteed a commission regardless of who procures the buyer. Question number 2. The appraisal approach most likely to be used in valuing a public library building or a police station would be: A, the market data approach. B. The land residual approach. C. The capitalization income approach. D. The cost replacement approach. The answer is D. The cost replacement approach. Cost approach is the process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the replacement cost of the building, less depreciation. The replacement cost of improvements is the cost to replace an improvement with another improvement having the same utility.