Texas SAE Real Estate Appraisal Exam 2025 With
400 Real Exam Prep Questions And Correct Answers/
TX SAE Real Estate Appraisal Test 2025(brand new!)
When valuing a lease, the appraiser must review the details of the lease
to_____.
A)Determine how interest in the property is attributed.
B)Determine if the lease holds a value that can be appraised
C)Determine who the client for the appraisal assignment is
D)Ensure it's legal
Determine how interest in the property is attributed --- The appraised lease
value is divided according to the interest of the lessor and lessee, and the sub-
lessee, if one exist.
The appraiser's opinion of market value is based on data, experience,
judgement, and ___________ for the subject property.
A)Previous Appraisal values
B)The lender's desired value
C)The state of the market
D) The value requested by the borrower
The state of the market
Which of the following properties requires the appraiser to include
information about the monthly fees charged by the property management, the
location of the subject property within a community, and the areas considered
private or public?
A)Condo Unit
B)Manufactured Home
C)Property owned by tenants in common
D)Unit in a PUD
Condo Unit
The ______ stipulate that an appraiser for a federally related transaction
must be licensed in the state where the property is located and also be
knowledgeable about the local market.
pg. 1
,A)Appraisal Institute performance standards
B)Appraiser Independence Requirements
C)Federal Appraisal Transaction Standards
D) Uniform requirements for professional Appraisals
Appraiser Independence Requirements
A ________ is qualified to appraise any one-to four-unit residential property,
regardless of value or complexity, but is not qualified to appraise subdivisions.
A)Appraiser Trainee
B)Certified general real property appraiser
C)Certified residential real property appraiser
C)Licensed real property appraiser
Certified residential real property appraiser -- the certified residential real
property appraiser is a specialist in all types of residential development, but is
not qualified for commercial property appraisal.
An Investor wants to know how much he could have earned if he'd put his
money into a different investment. This is known as the ______. It is also the
minimum rate of return an investor requires.
A)Capital recapture
B)Cost of Capital
C)Return on investment
D)Return of Investment
Cost of Capital
Which of the following is a loss in value caused by wear and tear?
A) Economic Obsolescence
B)External Deterioration
C)Functional Obsolescence
D)Physical Deterioration
Physical Deterioration
Stacy is applying a capitalization rate to an income comparison of similar
properties to determine the impact on the subject property's overall value.
What method is she using to measure depreciation?
A)Age-life
B)Capitalized Value
pg. 2
,C)Market Extraction
D)Observed Condition
Capitalized Value - With the capitalized value method, the appraiser
calculated the loss in income due to depreciation by comparing the income
that similar properties produce. --X
Which value-influencing DUST factor addresses the ease with which the
property can be conveyed to another?
A)Demand
B)Scarcity
C)Transferability
D)Utility
Transferability
What part of an appraisal report would you expect to see first if you were
looking at a narrative appraisal report for a commercial property?
A)Cover Letter
B)Introduction
C)Overview and Summary
D)Value conclusions
Cover Letter - Narrative reports are presented with a cover letter that
presents the final appraisal value up front. The details that support this value
conclusion are contained in the report.
What method of land valuation converts the amount of yearly income a site
will produce into a value using a capitalization rate?
A)Abstraction
B)Allocation
C)Ground rent cap
D)Sales Comparison
Ground Rent Cap -- this describes the ground rent capitalization method.
When this method is used, the appraiser must consider lease terms (amount of
time remaining, rent paid, and other conditions) in order to compute and
complete appraisal.
The assumption that if an identical property were sold recently, its sales price
should be a good indicator of the value of the subject property describes
pg. 3
, which value principle?
A)Anticipation
B)Balance
C)Contribution
D)Substitution
Substitution
If an endangered species or wetlands exist on a site, which of the following is
true?
A)These are both environmental concerns that can directly impact the site's
value.
B)These conditions will of affect the site's appraisal value.
C)The site's appraisal value will always be higher than a site without those
environmental conditions.
D)The site's appraisal value will always be lower than a site without those
environmental conditions.
These are both environmental concerns that can directly impact the site's
value.
What is the meaning of fee simple estate?
A)One in which the lease payments remain the same over the term of the lease
B)One that conveys the broadest form of ownership
C)One that passes to heirs without estate taxes
D)One that 's subject to a tax abandonment
One that conveys the broadest form of ownership
If there is an overall change in market value, what type of adjustment can an
appraiser use to show the overall effect of the change?
A)Dollar adjustment
B)Gross Adjustment
pg. 4
400 Real Exam Prep Questions And Correct Answers/
TX SAE Real Estate Appraisal Test 2025(brand new!)
When valuing a lease, the appraiser must review the details of the lease
to_____.
A)Determine how interest in the property is attributed.
B)Determine if the lease holds a value that can be appraised
C)Determine who the client for the appraisal assignment is
D)Ensure it's legal
Determine how interest in the property is attributed --- The appraised lease
value is divided according to the interest of the lessor and lessee, and the sub-
lessee, if one exist.
The appraiser's opinion of market value is based on data, experience,
judgement, and ___________ for the subject property.
A)Previous Appraisal values
B)The lender's desired value
C)The state of the market
D) The value requested by the borrower
The state of the market
Which of the following properties requires the appraiser to include
information about the monthly fees charged by the property management, the
location of the subject property within a community, and the areas considered
private or public?
A)Condo Unit
B)Manufactured Home
C)Property owned by tenants in common
D)Unit in a PUD
Condo Unit
The ______ stipulate that an appraiser for a federally related transaction
must be licensed in the state where the property is located and also be
knowledgeable about the local market.
pg. 1
,A)Appraisal Institute performance standards
B)Appraiser Independence Requirements
C)Federal Appraisal Transaction Standards
D) Uniform requirements for professional Appraisals
Appraiser Independence Requirements
A ________ is qualified to appraise any one-to four-unit residential property,
regardless of value or complexity, but is not qualified to appraise subdivisions.
A)Appraiser Trainee
B)Certified general real property appraiser
C)Certified residential real property appraiser
C)Licensed real property appraiser
Certified residential real property appraiser -- the certified residential real
property appraiser is a specialist in all types of residential development, but is
not qualified for commercial property appraisal.
An Investor wants to know how much he could have earned if he'd put his
money into a different investment. This is known as the ______. It is also the
minimum rate of return an investor requires.
A)Capital recapture
B)Cost of Capital
C)Return on investment
D)Return of Investment
Cost of Capital
Which of the following is a loss in value caused by wear and tear?
A) Economic Obsolescence
B)External Deterioration
C)Functional Obsolescence
D)Physical Deterioration
Physical Deterioration
Stacy is applying a capitalization rate to an income comparison of similar
properties to determine the impact on the subject property's overall value.
What method is she using to measure depreciation?
A)Age-life
B)Capitalized Value
pg. 2
,C)Market Extraction
D)Observed Condition
Capitalized Value - With the capitalized value method, the appraiser
calculated the loss in income due to depreciation by comparing the income
that similar properties produce. --X
Which value-influencing DUST factor addresses the ease with which the
property can be conveyed to another?
A)Demand
B)Scarcity
C)Transferability
D)Utility
Transferability
What part of an appraisal report would you expect to see first if you were
looking at a narrative appraisal report for a commercial property?
A)Cover Letter
B)Introduction
C)Overview and Summary
D)Value conclusions
Cover Letter - Narrative reports are presented with a cover letter that
presents the final appraisal value up front. The details that support this value
conclusion are contained in the report.
What method of land valuation converts the amount of yearly income a site
will produce into a value using a capitalization rate?
A)Abstraction
B)Allocation
C)Ground rent cap
D)Sales Comparison
Ground Rent Cap -- this describes the ground rent capitalization method.
When this method is used, the appraiser must consider lease terms (amount of
time remaining, rent paid, and other conditions) in order to compute and
complete appraisal.
The assumption that if an identical property were sold recently, its sales price
should be a good indicator of the value of the subject property describes
pg. 3
, which value principle?
A)Anticipation
B)Balance
C)Contribution
D)Substitution
Substitution
If an endangered species or wetlands exist on a site, which of the following is
true?
A)These are both environmental concerns that can directly impact the site's
value.
B)These conditions will of affect the site's appraisal value.
C)The site's appraisal value will always be higher than a site without those
environmental conditions.
D)The site's appraisal value will always be lower than a site without those
environmental conditions.
These are both environmental concerns that can directly impact the site's
value.
What is the meaning of fee simple estate?
A)One in which the lease payments remain the same over the term of the lease
B)One that conveys the broadest form of ownership
C)One that passes to heirs without estate taxes
D)One that 's subject to a tax abandonment
One that conveys the broadest form of ownership
If there is an overall change in market value, what type of adjustment can an
appraiser use to show the overall effect of the change?
A)Dollar adjustment
B)Gross Adjustment
pg. 4
