TEXAS PRINCIPLES OF REAL ESTATE 1 AND 11 FINAL
EXAM 2024 AND STUDY GUIDE 400 QUESTIONS WITH
DETAILED VERIFIED SOLUTIONS (100% CORRECT) /A+
GRADE ASSURED
The approach used as the best indicator of value for existing properties.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: B
Refers to the loss in desirability of the style, layout, or function of an element of a
property over time.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: A
The price a willing seller will sell for, and the price a willing buyer will pay.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: D
The legal use for property that gives the greatest return in money and/or amenities.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: C
The loss in value of a property caused by factors outside of the property itself.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: E
,The appraised value of a property is:
a. The sale price
b. An opinion of value
c. A market analysis
d. The market value of a property - ANSWER: B
A "lite" appraisal is often referred to as a(n):
a. Drive-by appraisal
b. Full appraisal
c. Appraisal review
d. Summary appraisal - ANSWER: A
In the appraisal report, the property being appraised is referred to as the
___________________.
a. Target property
b. Comparable property
c. Sold property
d. Subject property - ANSWER: D
A homeowner added a swimming pool to a home at a cost of $75,000. During an
appraisal, the appraiser determined that the pool added $55,000 to the value of the
property. In this case, the appraiser was applying the principle of _______________
in the analysis.
a. Anticipation
b. Change
c. Substitution
d. Contribution - ANSWER: D
An appraisal has a limited "shelf life" because of the principle of
__________________.
a. Anticipation
b. Change
c. Substitution
d. Contribution - ANSWER: B
The legal use of a property that gives the greatest return in money and/or amenities
is known as the property's _______________.
a. Net adjusted value
b. Highest and best use
c. Going concern value
, d. Assessed value - ANSWER: B
The value of a property can automatically be inferred from the prices at which other
similar properties have sold.
a. True
b. False - ANSWER: B
____________________ is the most probable price a property should bring in a
competitive and open market under all conditions requisite to a fair sale.
a. Sales price
b. Business value
c. Assessed value
d. Market value - ANSWER: D
The chronological age of a property is:
a. The actual age of the property
b. The age of the property based upon is current condition
c. The age of the property as estimated by an appraisal district
d. The actual age of the property minus the number of years remaining on a
mortgage - ANSWER: A
In a neighborhood of homes that primarily have three or four bedrooms and two or
more baths, an appraiser adjusts the value of a property downward because it has
three bedrooms and only one bath. This adjustment is an example of
_____________________.
a. Physical deterioration
b. Economic obsolescence
c. Functional obsolescence
d. External obsolescence - ANSWER: C
Which of the following principles of Real Estate Appraisal subscribes to the notion
that value is derived from the expectancy of future benefits from a location?
a. The Principal of Substitution
b. The Principle of Anticipation
c. Highest and Best Use
d. The Principle of Change - ANSWER: B
When the demand for real estate in an area is great, and the supply is low:
a. The price goes up
b. The price goes down
c. The price stays the same
EXAM 2024 AND STUDY GUIDE 400 QUESTIONS WITH
DETAILED VERIFIED SOLUTIONS (100% CORRECT) /A+
GRADE ASSURED
The approach used as the best indicator of value for existing properties.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: B
Refers to the loss in desirability of the style, layout, or function of an element of a
property over time.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: A
The price a willing seller will sell for, and the price a willing buyer will pay.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: D
The legal use for property that gives the greatest return in money and/or amenities.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: C
The loss in value of a property caused by factors outside of the property itself.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence - ANSWER: E
,The appraised value of a property is:
a. The sale price
b. An opinion of value
c. A market analysis
d. The market value of a property - ANSWER: B
A "lite" appraisal is often referred to as a(n):
a. Drive-by appraisal
b. Full appraisal
c. Appraisal review
d. Summary appraisal - ANSWER: A
In the appraisal report, the property being appraised is referred to as the
___________________.
a. Target property
b. Comparable property
c. Sold property
d. Subject property - ANSWER: D
A homeowner added a swimming pool to a home at a cost of $75,000. During an
appraisal, the appraiser determined that the pool added $55,000 to the value of the
property. In this case, the appraiser was applying the principle of _______________
in the analysis.
a. Anticipation
b. Change
c. Substitution
d. Contribution - ANSWER: D
An appraisal has a limited "shelf life" because of the principle of
__________________.
a. Anticipation
b. Change
c. Substitution
d. Contribution - ANSWER: B
The legal use of a property that gives the greatest return in money and/or amenities
is known as the property's _______________.
a. Net adjusted value
b. Highest and best use
c. Going concern value
, d. Assessed value - ANSWER: B
The value of a property can automatically be inferred from the prices at which other
similar properties have sold.
a. True
b. False - ANSWER: B
____________________ is the most probable price a property should bring in a
competitive and open market under all conditions requisite to a fair sale.
a. Sales price
b. Business value
c. Assessed value
d. Market value - ANSWER: D
The chronological age of a property is:
a. The actual age of the property
b. The age of the property based upon is current condition
c. The age of the property as estimated by an appraisal district
d. The actual age of the property minus the number of years remaining on a
mortgage - ANSWER: A
In a neighborhood of homes that primarily have three or four bedrooms and two or
more baths, an appraiser adjusts the value of a property downward because it has
three bedrooms and only one bath. This adjustment is an example of
_____________________.
a. Physical deterioration
b. Economic obsolescence
c. Functional obsolescence
d. External obsolescence - ANSWER: C
Which of the following principles of Real Estate Appraisal subscribes to the notion
that value is derived from the expectancy of future benefits from a location?
a. The Principal of Substitution
b. The Principle of Anticipation
c. Highest and Best Use
d. The Principle of Change - ANSWER: B
When the demand for real estate in an area is great, and the supply is low:
a. The price goes up
b. The price goes down
c. The price stays the same
