Which purpose does the Equalization Factor in Illinois serve? (4 Points)

A. Equalizing the tax income from property taxes across all counties of Illinois

B. Equalizing the proportion between taxed and tax exempt properties across all counties of Illinois

C. Equalizing the ratio between the fair market evaluation and the assessed valuation across all counties of Illinois.

D. All of the above

What must be true when we can observe a transaction price? (4 Points)

A. Seller and buyer are estimating the exact same market value for the property.

B. Seller and buyer are estimating the exact same investment value for the property.

C. Seller and buyer are estimating the exact same market and investment value for the property.

D. The buyer estimates an investment value that is as high or higher than the investment value the seller had estimated.

It is possible and necessary to follow a strict template for market research that will lead to a uniform approach in each and every situation. (2 Points)

True

False

Who is currently responsible in Cook County for sending property tax bills to tax payers? (4 Points)

A. County Assessor Fritz Kaegi

B. County Clerk Karen A. Yarbrough

C. County Treasurer Maria Pappas

D. Governor J.B. Pritzker

You have to be state certified to work as an appraiser. (2 Points)

Yes

No

Depends on the state.

Assume the standard assessment level for Cook County discussed in class and an Equalization Factor of 3. What will be the equalized assessed value before exemptions for a property assessed at $500,000? (6 Points)

Which of the following events would by itself not make it necessary to conduct a new market evaluation for real estate property? (4 Points)

A. You are planning to sell it.

B. You need it as a collateral for a mortgage.

C. A new project should be developed on its grounds.

D. The last appraisal was five years ago.

Consider the last question above. What would happen to the equilibrium point E? (4 Points)

A. It remains at the same price

B. The new quantity is higher, while the price is lower.

C. The new quantity and price are both higher

D. The new quantity is lower but the price is higher

E. The new quantity and price are both lower

When conducting your market research, you should always consider the average statistical values of interest for all real estate within the targeted geographic area. (2 Points)

True

False

Which of the forces listed below would you consider to cause an increase in demand for the purchase of residential real estate? (4 Points)

A. Increase in property taxes

B. Stricter zoning restrictions

C. A decrease in violent crime

D. An increase in the risk for natural disasters.