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NSAR SALESPERSON LICENSING
COURSE 2025 UPDATED ACTUAL EXAM
WITH CORRECT SOLUTIONS.
Subjective Value - correct answer- the perception of value in
the minds of the buyer and seller
Objective Value - correct 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 - correct
answer- -insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
Three approaches that appraisers use to establish an estimate
of value - correct answer- -cost approach (actual cost)
-income approach (subjective value)
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-direct comparison approach (subjective value)
market price - correct answer- the price for an individual
property
market value (aka value in exchange) - correct answer- an
estimate of value arising from many sales (market prices)
Definition of Market Value - correct 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! - correct answer- Instagram: @laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
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The 4 assumptions of market value - correct answer- 1)
reasonable time
2) no undue pressure
3) prudent behaviour
4) informed buyer and seller
15 Principles of Value - correct 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
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Principle of Anticipation - correct answer- Buyers buy the
present worth of future benefits (e.g. thinking about resale
value)
Principle of Balance - correct answer- Maximum value is
maintained through balance (e.g. huge house with only one car
garage is not balanced)
Principle of Change - correct 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 - correct answer- Excess profit breeds
ruinous competition (two people see same opportunity and both
jump in; neither will achieve their anticipated profits)
Principle of Conformity - correct answer- Reasonable
conformance with existing standards protects value (houses
that conform with one another hold their value)
Principle of Consistent Use - correct answer- No double dipping
when analyzing value (can't give value to the house on a
NSAR SALESPERSON LICENSING
COURSE 2025 UPDATED ACTUAL EXAM
WITH CORRECT SOLUTIONS.
Subjective Value - correct answer- the perception of value in
the minds of the buyer and seller
Objective Value - correct 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 - correct
answer- -insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
Three approaches that appraisers use to establish an estimate
of value - correct answer- -cost approach (actual cost)
-income approach (subjective value)
,2 | Page
-direct comparison approach (subjective value)
market price - correct answer- the price for an individual
property
market value (aka value in exchange) - correct answer- an
estimate of value arising from many sales (market prices)
Definition of Market Value - correct 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! - correct answer- Instagram: @laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
,3 | Page
The 4 assumptions of market value - correct answer- 1)
reasonable time
2) no undue pressure
3) prudent behaviour
4) informed buyer and seller
15 Principles of Value - correct 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
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Principle of Anticipation - correct answer- Buyers buy the
present worth of future benefits (e.g. thinking about resale
value)
Principle of Balance - correct answer- Maximum value is
maintained through balance (e.g. huge house with only one car
garage is not balanced)
Principle of Change - correct 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 - correct answer- Excess profit breeds
ruinous competition (two people see same opportunity and both
jump in; neither will achieve their anticipated profits)
Principle of Conformity - correct answer- Reasonable
conformance with existing standards protects value (houses
that conform with one another hold their value)
Principle of Consistent Use - correct answer- No double dipping
when analyzing value (can't give value to the house on a
