Real Estate Valuation and Appraisal
Practice Exam questions with actual
answers.
A property at its highest and best use will: ANS - Produce the greatest net income over a period of time
A well done appraisal, including consideration of all available data, and completed by an appraiser of
much experience and good judgment, is best defined as: ANS - An opinion
As a concept of value, the highest and best use is the use that: ANS - Produces the greatest net return
on the investment
Smith owns an older home on a corner lot. A professional appraiser advised him that considerably more
income could be obtained if the house were torn down and a different improvement placed upon the
lot. This illustrates the principle of: ANS - Highest and best use
Which best describes the highest and best use of property? ANS - The use that will produce the highest
net income
The addition to total property value produced by an additional property component is considered to
have resulted from the: ANS - Principle of contribution
A 'real estate appraisal' is an estimate of value: ANS - Based upon analysis of facts as of a specific date
In a real estate analysis one should be more interested in: ANS - Future economic life of the
improvements
Which of the following tends to lower property values? ANS - Deferred maintenance
Which of the following is not a characteristic of value? ANS - Cost
, The value of a piece of land: ANS - Is an estimate of the present worth of future benefits
If the rezoning of a property results in the sudden increase of its value, this increase would be known as:
ANS - Unearned increment
If a person constructed a high quality home costing $100,000 in a neighborhood where other homes
were valued at $50,000, there would be an immediate loss in value. This type of loss in value is called:
ANS - Regression
Construction of homes costing $90,000 in an area of homes valued at $40,000 would affect the lesser
value homes in accordance with the principle of: ANS - Progression
To realize the maximum value of property, a reasonable degree of sociological and economic
homogeneity is necessary, but it should not become monotonously uniform. In real estate, this concept
is called the principle of: ANS - Conformity
If effective demand for real property in an area remains about the same, over time, the market price will
tend to: ANS - Rise when supply decreases
The value of the best property in the neighborhood will be adversely affected by the presence of
comparatively substandard property in the same neighborhood. This is a statement relating to value and
is known as the principle of: ANS - Regression
If the demand for houses remains constant, whereas the supply of housing: ANS - Diminishes, the value
should increase
Market value is: ANS - The price a willing seller will accept and a willing purchaser will pay
The amount of money which would be paid by a buyer to a seller for property; both buyer and seller
being ready, willing, and able to act and both being fully informed, represents that property's: ANS -
Market value
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Professorkaylee. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.