NSAR Salesperson Licensing Course Exam
2024 | NSAR Salesperson Licensing Course
Actual Exam 2024 Questions and Correct
Answers Rated A+
Subjective Value - ANSWER-the perception of value in the minds of
the buyer and seller
Objective Value - ANSWER-related to the direct cost of creating (e.g.
acquiring a lot and building a home)
Types of value found in the Canadian Economy - ANSWER--
insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
Three approaches that appraisers use to establish an estimate of
value - ANSWER--cost approach (actual cost)
-income approach (subjective value)
-direct comparison approach (subjective value)
market price - ANSWER-the price for an individual property
market value (aka value in exchange) - ANSWER-an estimate of value
arising from many sales (market prices)
Definition of Market Value - ANSWER-The most probable price, as of
a specified date, in cash, or in terms equivalent to cash or in other
precisely revealed terms, for which the specified property rights should
sell after reasonable exposure in a competitive market under all
conditions requisite to a fair-sale, with the buyer and seller each acting
,prudently, knowledgeably, and for self-interest, and assuming that
neither is under undue duress.
What brokerage should you join after you pass this exam? Let's chat! -
ANSWER-Instagram: @laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
The 4 assumptions of market value - ANSWER-1) reasonable time
2) no undue pressure
3) prudent behaviour
4) informed buyer and seller
15 Principles of Value - ANSWER-- Principle of Anticipation
- Principle of Balance
- Principle of Change
- Principle of Competition
- Principle of Conformity
- Principle of Consistent Use
- Principle of Contribution
- Principle of External Factors
- Principle of Highest & Best Use
- Principle of Increasing/Decreasing Returns
- Principle of Progression
- Principle of Regression
- Principle of Substitution
- Principle of Supply & Demand
- Principle of Surplus
- Productivity
Principle of Anticipation - ANSWER-Buyers buy the present worth of
future benefits (e.g. thinking about resale value)
Principle of Balance - ANSWER-Maximum value is maintained
through balance (e.g. huge house with only one car garage is not
balanced)
,Principle of Change - ANSWER-A value today is valid only for today
(e.g. large portion of the community will be losing their jobs = lower
value of house as lower demand)
Principle of Competition - ANSWER-Excess profit breeds ruinous
competition (two people see same opportunity and both jump in;
neither will achieve their anticipated profits)
Principle of Conformity - ANSWER-Reasonable conformance with
existing standards protects value (houses that conform with one
another hold their value)
Principle of Consistent Use - ANSWER-No double dipping when
analyzing value (can't give value to the house on a commercial
property worth building on; must be viewed together as you'd have to
renovate the house to use it commercially)
Principle of Contribution - ANSWER-Value relates to contribution; not
cost (owner wants to put in a pool that cost $10,000 but appraiser
says it will only improve value of house by $7,000)
Principle of External Factors - ANSWER-Things nearby can influence
value (two comparable houses purchased on a quiet vs. noisy street =
noisy street will have decreased value)
Principle of Highest and Best Use - ANSWER-Focus on the use that
will produce the greatest return (look at the property's current and
potential use = large house on lot that a four-plex could be built; value
can increase based on this possibility)
Principle of Increasing/Decreasing Returns - ANSWER-More is not
necessarily better (building one garage may increase value, but
building two more wont increase 3x; it reaches a point)
Principle of Progression - ANSWER-The smallest house on the street
might be the best buy (when houses aren't similar; the poorest
property increases in value)
, Principle of Regression - ANSWER-The largest house on the street
might not be the best buy (when houses aren't similar; the highest
value home loses value due to it's neighbours)
Principle of Substitution - ANSWER-Buyers look for the best bang for
their buck (they value a home by comparing it to a substitute and
choose the best priced one)
Principle of Supply and Demand - ANSWER-Market forces are always
at work (supply decreases value; demand increases value)
Principle of Surplus Productivity - ANSWER-Net income flows to the
land (after all costs are satisfied, the net income flows to land and
establishes the value of that land)
Definition of Appraisal - ANSWER-The act or process of estimating
value and providing an opinion concerning that value.
8 Steps of the Appraisal Process - ANSWER-1) Define the problem
2) Preliminary inspection & planning the work
3) Data collection & analysis
4) Apply the cost approach
5) Apply the direct comparison approach
6) Apply the income approach
7) Reconciliation and final estimate
8) Write the appraisal report
Tenure (historical) - ANSWER-the holding of land without ownership
(a right to possess [not own] subject to payment, to a lord or king)
Estate (historical) - ANSWER-the status or extent of rights associated
with tenure (e.g. the right to pass on tenure from parent to child) and
formed the building blocks of modern real estate law.
Definition of Tenure - ANSWER-A right to hold property
2024 | NSAR Salesperson Licensing Course
Actual Exam 2024 Questions and Correct
Answers Rated A+
Subjective Value - ANSWER-the perception of value in the minds of
the buyer and seller
Objective Value - ANSWER-related to the direct cost of creating (e.g.
acquiring a lot and building a home)
Types of value found in the Canadian Economy - ANSWER--
insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
Three approaches that appraisers use to establish an estimate of
value - ANSWER--cost approach (actual cost)
-income approach (subjective value)
-direct comparison approach (subjective value)
market price - ANSWER-the price for an individual property
market value (aka value in exchange) - ANSWER-an estimate of value
arising from many sales (market prices)
Definition of Market Value - ANSWER-The most probable price, as of
a specified date, in cash, or in terms equivalent to cash or in other
precisely revealed terms, for which the specified property rights should
sell after reasonable exposure in a competitive market under all
conditions requisite to a fair-sale, with the buyer and seller each acting
,prudently, knowledgeably, and for self-interest, and assuming that
neither is under undue duress.
What brokerage should you join after you pass this exam? Let's chat! -
ANSWER-Instagram: @laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
The 4 assumptions of market value - ANSWER-1) reasonable time
2) no undue pressure
3) prudent behaviour
4) informed buyer and seller
15 Principles of Value - ANSWER-- Principle of Anticipation
- Principle of Balance
- Principle of Change
- Principle of Competition
- Principle of Conformity
- Principle of Consistent Use
- Principle of Contribution
- Principle of External Factors
- Principle of Highest & Best Use
- Principle of Increasing/Decreasing Returns
- Principle of Progression
- Principle of Regression
- Principle of Substitution
- Principle of Supply & Demand
- Principle of Surplus
- Productivity
Principle of Anticipation - ANSWER-Buyers buy the present worth of
future benefits (e.g. thinking about resale value)
Principle of Balance - ANSWER-Maximum value is maintained
through balance (e.g. huge house with only one car garage is not
balanced)
,Principle of Change - ANSWER-A value today is valid only for today
(e.g. large portion of the community will be losing their jobs = lower
value of house as lower demand)
Principle of Competition - ANSWER-Excess profit breeds ruinous
competition (two people see same opportunity and both jump in;
neither will achieve their anticipated profits)
Principle of Conformity - ANSWER-Reasonable conformance with
existing standards protects value (houses that conform with one
another hold their value)
Principle of Consistent Use - ANSWER-No double dipping when
analyzing value (can't give value to the house on a commercial
property worth building on; must be viewed together as you'd have to
renovate the house to use it commercially)
Principle of Contribution - ANSWER-Value relates to contribution; not
cost (owner wants to put in a pool that cost $10,000 but appraiser
says it will only improve value of house by $7,000)
Principle of External Factors - ANSWER-Things nearby can influence
value (two comparable houses purchased on a quiet vs. noisy street =
noisy street will have decreased value)
Principle of Highest and Best Use - ANSWER-Focus on the use that
will produce the greatest return (look at the property's current and
potential use = large house on lot that a four-plex could be built; value
can increase based on this possibility)
Principle of Increasing/Decreasing Returns - ANSWER-More is not
necessarily better (building one garage may increase value, but
building two more wont increase 3x; it reaches a point)
Principle of Progression - ANSWER-The smallest house on the street
might be the best buy (when houses aren't similar; the poorest
property increases in value)
, Principle of Regression - ANSWER-The largest house on the street
might not be the best buy (when houses aren't similar; the highest
value home loses value due to it's neighbours)
Principle of Substitution - ANSWER-Buyers look for the best bang for
their buck (they value a home by comparing it to a substitute and
choose the best priced one)
Principle of Supply and Demand - ANSWER-Market forces are always
at work (supply decreases value; demand increases value)
Principle of Surplus Productivity - ANSWER-Net income flows to the
land (after all costs are satisfied, the net income flows to land and
establishes the value of that land)
Definition of Appraisal - ANSWER-The act or process of estimating
value and providing an opinion concerning that value.
8 Steps of the Appraisal Process - ANSWER-1) Define the problem
2) Preliminary inspection & planning the work
3) Data collection & analysis
4) Apply the cost approach
5) Apply the direct comparison approach
6) Apply the income approach
7) Reconciliation and final estimate
8) Write the appraisal report
Tenure (historical) - ANSWER-the holding of land without ownership
(a right to possess [not own] subject to payment, to a lord or king)
Estate (historical) - ANSWER-the status or extent of rights associated
with tenure (e.g. the right to pass on tenure from parent to child) and
formed the building blocks of modern real estate law.
Definition of Tenure - ANSWER-A right to hold property
