MCKISSOCK BASIC APPRAISAL COMPREHENSIVE EXAM
2026 QUESTIONS AND SOLUTIONS SCORED A+
✔✔district - ✔✔neighborhood characterized by homo land use
✔✔market area - ✔✔geographic region from which a majority of demand comes and in
which the majority of competition is located
✔✔amenity - ✔✔benefit of real estate that enhances attractiveness of the user
✔✔real estate money demand - ✔✔Currency plus demand and time deposits plus the
liabilities of nonbank financial intermediaries
✔✔monetary policy - ✔✔efforts by a central bank such as the FED in the US to
influence economic activity by regulating availability of money and rate of interest
✔✔money market - ✔✔interaction of buyers and sellers who trade short term money
instruments
✔✔capital market - ✔✔interaction of buyers and sellers trading long- or intermediate-
term money instruments
✔✔secondary money market - ✔✔created by govt. and private agencies for the
purchase and sale of existing mortgages making mortgages more liqud
✔✔contract on deed - ✔✔contract in which a purchaser of real estate agrees to pay a
small portion of the purchase price when the contract is signed and additional sums
✔✔conventional loan - ✔✔mortgage that is neither insured or guaranteed by an agency
of the federal govt although it may be privately insured
✔✔guaranteed mortgage - ✔✔a party other than the borrower assures payment in the
event of default
✔✔insured mortgage - ✔✔a party other than the borrower assures payment on default
by the mortgagor in return for the payment of a premium
✔✔first mortgage - ✔✔has priority over all other mortgage liens on a property
✔✔junior lien - ✔✔lien placed on property after a previous lien has been made and
recorded
✔✔amoritization - ✔✔process of retiring a debt or recovering a capital investment
typically through scheduled systematic repayment of the principal
, ✔✔fixed rate mortgage - ✔✔A mortgage in which the interest rate does not change
during the entire term of the loan.
✔✔balloon mortgage - ✔✔one that is not fully amortized at maturity and thus requires a
lump sum or balloon payment of the outstanding balance
✔✔graduated-payment mortgage (GPM) - ✔✔debt secured by real property in which
mortgage payments are usually projected to match increases in the borrower's income
✔✔adjustable rate mortgages - ✔✔debt secured by real property with an interest rate
that may move up or down
✔✔reverse mortgage - ✔✔type of mortgage whereby age-qualified homeowners
systematically borrow against the equity in their homes, receiving regular (usually
monthly) payments from the lender
✔✔discount points - ✔✔percentage of the loan amount that a lender charges a
borrower for making a loan
✔✔utility - ✔✔ability of a product to satisfy a human want need or desire; the ability of a
property or building to be useful and to perform the function for which it is intended
according to current market taste and standards
✔✔scarcity - ✔✔present or anticipated undersupply of an item relative to the demand
for it
✔✔effective purchasing power - ✔✔ability of an individual or group to participate in a
market
✔✔external market forces - ✔✔planning,zoning,building codes, envt restrictions, taxes,
utilities, transportation, education, cultural, parks and rec, police, fire protection, public
safety
✔✔National Oceanic and Atmospheric Administration - ✔✔charged with monitoring
coastal habitats, such as estuaries and reefs. It also monitors development, water and
sediment contamination, water diversion for industrial, agricultural, sedimentation, and
dredging and filling activities.
✔✔US Army Corps of Engineers - ✔✔mission is planning, designing, building and
operating water resources and other civil works projects including:
Navigation,
Flood control,
Environmental protection,
Disaster response,
2026 QUESTIONS AND SOLUTIONS SCORED A+
✔✔district - ✔✔neighborhood characterized by homo land use
✔✔market area - ✔✔geographic region from which a majority of demand comes and in
which the majority of competition is located
✔✔amenity - ✔✔benefit of real estate that enhances attractiveness of the user
✔✔real estate money demand - ✔✔Currency plus demand and time deposits plus the
liabilities of nonbank financial intermediaries
✔✔monetary policy - ✔✔efforts by a central bank such as the FED in the US to
influence economic activity by regulating availability of money and rate of interest
✔✔money market - ✔✔interaction of buyers and sellers who trade short term money
instruments
✔✔capital market - ✔✔interaction of buyers and sellers trading long- or intermediate-
term money instruments
✔✔secondary money market - ✔✔created by govt. and private agencies for the
purchase and sale of existing mortgages making mortgages more liqud
✔✔contract on deed - ✔✔contract in which a purchaser of real estate agrees to pay a
small portion of the purchase price when the contract is signed and additional sums
✔✔conventional loan - ✔✔mortgage that is neither insured or guaranteed by an agency
of the federal govt although it may be privately insured
✔✔guaranteed mortgage - ✔✔a party other than the borrower assures payment in the
event of default
✔✔insured mortgage - ✔✔a party other than the borrower assures payment on default
by the mortgagor in return for the payment of a premium
✔✔first mortgage - ✔✔has priority over all other mortgage liens on a property
✔✔junior lien - ✔✔lien placed on property after a previous lien has been made and
recorded
✔✔amoritization - ✔✔process of retiring a debt or recovering a capital investment
typically through scheduled systematic repayment of the principal
, ✔✔fixed rate mortgage - ✔✔A mortgage in which the interest rate does not change
during the entire term of the loan.
✔✔balloon mortgage - ✔✔one that is not fully amortized at maturity and thus requires a
lump sum or balloon payment of the outstanding balance
✔✔graduated-payment mortgage (GPM) - ✔✔debt secured by real property in which
mortgage payments are usually projected to match increases in the borrower's income
✔✔adjustable rate mortgages - ✔✔debt secured by real property with an interest rate
that may move up or down
✔✔reverse mortgage - ✔✔type of mortgage whereby age-qualified homeowners
systematically borrow against the equity in their homes, receiving regular (usually
monthly) payments from the lender
✔✔discount points - ✔✔percentage of the loan amount that a lender charges a
borrower for making a loan
✔✔utility - ✔✔ability of a product to satisfy a human want need or desire; the ability of a
property or building to be useful and to perform the function for which it is intended
according to current market taste and standards
✔✔scarcity - ✔✔present or anticipated undersupply of an item relative to the demand
for it
✔✔effective purchasing power - ✔✔ability of an individual or group to participate in a
market
✔✔external market forces - ✔✔planning,zoning,building codes, envt restrictions, taxes,
utilities, transportation, education, cultural, parks and rec, police, fire protection, public
safety
✔✔National Oceanic and Atmospheric Administration - ✔✔charged with monitoring
coastal habitats, such as estuaries and reefs. It also monitors development, water and
sediment contamination, water diversion for industrial, agricultural, sedimentation, and
dredging and filling activities.
✔✔US Army Corps of Engineers - ✔✔mission is planning, designing, building and
operating water resources and other civil works projects including:
Navigation,
Flood control,
Environmental protection,
Disaster response,
