In this short educational video, the presenter poses two multiple‑choice questions related to real‑estate appraisal and fair‑housing law. The first question asks when physical deterioration is considered curable; the correct answer is that it is curable when the cost to correct the issue is less than the increase in the property’s value, illustrated with a case where an older office building can be renovated for $2.2 million and sold for $4 million, making the repair financially sensible. The second question concerns illegal steering by a broker; the correct answer is that the broker showed properties in a predominantly minority neighborhood without asking the buyers, constituting racial steering, which is prohibited by fair‑housing regulations. The video provides concise definitions, cost‑benefit reasoning, and a brief legal context for each concept.
Chapters
Question of the day. Question number 1: Physical deterioration is considered curable whenever: A. It does not result in loss of economic utility. B. It is caused by lack of maintenance. C. It can be repaired regardless of the cost. D. The cost to correct the issue is less than the resulting value increase. The answer is D. The cost to correct the issue is less than the resulting value increase. Physical deterioration is considered curable whenever it makes financial sense to fix a problem. For example, let's say an older office building needs to update electric and add bathrooms, repartition offices, and fire safety features to meet code for resale. The cost to complete the work is estimated at $2.2 million. However, the building is fully paid for and can easily be sold for $4 million. In this case, curing the defects makes sense. However, if those numbers were reversed, as is often the case, demolishing the building and starting over with a new structure or different use— example, retail space and a parking garage— would be the wiser choice. Question number 2: A broker was found guilty of steering. What did the broker do? A. Before showing properties, she asked the buyers in what areas they wanted to see properties. B. Without asking, she showed properties in a predominantly minority community because the buyers were of the same race. C. She told the buyers what price to offer. D. She insisted on driving the buyers to each property shown. The answer is B. Without asking. She showed properties in a predominantly minority community because the buyers were of the same race. Racial steering refers to the practice of advising customers to purchase homes in particular neighborhoods on the basis of race. The broker steers the buyer towards a certain neighborhood based on their race. Fair housing laws prohibit steering and other discriminatory practices.
