Texas Principles of Real Estate 2
Texas Principles of Real Estate 2 Exam
Questions and Answers
Question 1
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
Correct Answer
B
Question 2
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
Correct Answer
A
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, Texas Principles of Real Estate 2
Question 3
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
Correct Answer
D
Question 4
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
Correct Answer
C
Question 5
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
Correct Answer
E
Page 2 of 49
, Texas Principles of Real Estate 2
Question 6
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
Correct Answer
B
Question 7
A "lite" appraisal is often referred to as a(n):
a. Drive-by appraisal
b. Full appraisal
c. Appraisal review
d. Summary appraisal
Correct Answer
A
Question 8
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
Correct Answer
D
Page 3 of 49
, Texas Principles of Real Estate 2
Question 9
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
Correct Answer
D
Question 10
An appraisal has a limited "shelf life" because of the principle of __________________.
a. Anticipation
b. Change
c. Substitution
d. Contribution
Correct Answer
B
Question 11
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
Correct Answer
B
Page 4 of 49
Texas Principles of Real Estate 2 Exam
Questions and Answers
Question 1
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
Correct Answer
B
Question 2
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
Correct Answer
A
Page 1 of 49
, Texas Principles of Real Estate 2
Question 3
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
Correct Answer
D
Question 4
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
Correct Answer
C
Question 5
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
Correct Answer
E
Page 2 of 49
, Texas Principles of Real Estate 2
Question 6
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
Correct Answer
B
Question 7
A "lite" appraisal is often referred to as a(n):
a. Drive-by appraisal
b. Full appraisal
c. Appraisal review
d. Summary appraisal
Correct Answer
A
Question 8
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
Correct Answer
D
Page 3 of 49
, Texas Principles of Real Estate 2
Question 9
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
Correct Answer
D
Question 10
An appraisal has a limited "shelf life" because of the principle of __________________.
a. Anticipation
b. Change
c. Substitution
d. Contribution
Correct Answer
B
Question 11
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
Correct Answer
B
Page 4 of 49
