Chapter 9 Smart book questions
The choice of your ______________ to live reflects your lifestyle, needs, values,
beliefs, and attitudes.
place
Select all that apply
The opportunity costs and common trade-offs of a housing decision include which of
the following?
-interest lost on money used for down payment
-the loss of tax advantages
-cost to commute to work when you live in area that offers less expensive housing
Select all that apply
What are the disadvantages of owning a condominium?
Less privacy
Uncertain demand affecting property value
Assessment fees
Renting is a fairly __________________ practice in the United States with about 35% of
households living in rental units.
common
When selecting an apartment, rent, length of lease, security deposit, and utilities
are some of the ______ people should consider.
financial aspects
Your ________________ , needs, desires, and attitudes are reflected in your choice of a
home.
Lifestyle
Renting makes job transfers ______.
easier
Like many financial decisions, when making a housing decision, you should consider
what you give up in time, ________________ , and money as a result of the decision.
effort
One of the reasons why renting offers fewer financial benefits than home ownership
is that rent is not __________________ deductible, while the interest on mortgage
payment.
tax
Select that all apply
What are the advantages of owning a condominium?
Tax benefits
Fewer maintenance responsibilities when compared to a house
Approximately 35 percent of U.S. households live in ______.
rental units
A ____________________ deposit provides the landlord with funds to cover the cost of
any damages done to the rental unit during the lease period.
Security
Select all that apply
The factors to examine when selecting the location of an apartment include:
public transportation.
schools and shopping.
Just before closing on a house, you often do a ______ before accepting the property.
walk-through
Select all that apply
Renting increases mobility by:
making it easier for people to get up and move.
decreasing financial investment in a home.
decreasing the amount of time one is required to be financially liable for housing.
Select all that apply
Which of the following are advantages of home ownership?
-The ability to borrow against the equity in the home.
-Income tax savings because of mortgage interest.
-Stability of residence and a personalized living location.
While most mortgage payments are fixed,_______________ can be subject to
increases over which the tenant has no control.
rent
An old adage that the three most important factors to consider when buying a home
are location, location, and location means that the ___________________ plays an
important part in determining market value. (Enter one word per blank.)
location
True or false: A security deposit covers the cost of damages that may be done to a
rental unit.
True
True or false: Some of the factors to consider when determining a price for a home
include the owner's need to sell, the time the home has been on the market, and
the features and condition of the home.
True
When you __________________ on a home purchase, you arrange for a date to sign
papers, obtain funds and the necessary documents, and request clarification on any
unclear issues. This is a one-word answer.
close
Which of the following is not one of the benefits of home ownership?
income tax deductibility of home repairs
True or False:
Being aware of zoning laws and restrictions on how a property in an area can be
used can be useful in making your real estate buying decision.
True
The most common sources for a(n) _________________ payment for a home purchase
include personal savings, pension plan funds, sale of investments, and assistance
from relatives. This is a one-word answer.
down
When closing on a home, the seller usually pays ______.
title insurance
True or false: Two external (market) factors that affect the price of a home are the
current demand for housing and the financing options (i.e., interest rates) available.
True
True or False:
Making needed repairs, painting the interior and exterior of the home and cleaning
all rooms are strategies that can lead to a fast and financially favorable sale.
True
True or False:
Factors that impact the asking price for a home include recent asking prices of
comparable homes in your area.
True
Having a place to call your own, the stability of a residence and a personalized
living space all contribute to a feeling known as ___________________ of ownership.
pride
True or False:
Even if you do not use a real estate agent to sell your home, you should use an
attorney or title company to close the transaction.
True
Select all that apply
Common sources of down payment funds to purchase a home include:
the sale of investments.
personal savings.
assistance from relatives.
Select all that apply
When purchasing a home, the buyer can expect to pay closing costs such as ______.
appraisal fee
recording fees
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