ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
A property at its highest and best use will: - ANSWER Produce the greatest net
income over a period of time
A well done appraisal, including consideration of all available data, and completed by an
appraiser of much experience and good judgment, is best defined as: - ANSWER An
opinion
As a concept of value, the highest and best use is the use that: - ANSWER Produces
the greatest net return on the investment
Smith owns an older home on a corner lot. A professional appraiser advised him that
considerably more income could be obtained if the house were torn down and a different
improvement placed upon the lot. This illustrates the principle of: -
ANSWER Highest and best use
Which best describes the highest and best use of property? - ANSWER The use that
will produce the highest net income
The addition to total property value produced by an additional property component is
considered to have resulted from the: - ANSWER Principle of contribution
A 'real estate appraisal' is an estimate of value: - ANSWER Based upon analysis of
facts as of a specific date
1
,In a real estate analysis one should be more interested in: - ANSWER Future
economic life of the improvements
Which of the following tends to lower property values? - ANSWER Deferred
maintenance
Which of the following is not a characteristic of value? - ANSWER Cost
The value of a piece of land: - ANSWER Is an estimate of the present worth of future
benefits
If the rezoning of a property results in the sudden increase of its value, this increase would
be known as: - ANSWER Unearned increment
If a person constructed a high quality home costing $100,000 in a neighborhood where
other homes were valued at $50,000, there would be an immediate loss in value. This type
of loss in value is called: - ANSWER Regression
Construction of homes costing $90,000 in an area of homes valued at $40,000 would affect
the lesser value homes in accordance with the principle of: - ANSWER Progression
To realize the maximum value of property, a reasonable degree of sociological and economic
homogeneity is necessary, but it should not become monotonously uniform. In real estate,
this concept is called the principle of: - ANSWER Conformity
If effective demand for real property in an area remains about the same, over time, the
market price will tend to: - ANSWER Rise when supply decreases
2
, The value of the best property in the neighborhood will be adversely affected by the
presence of comparatively substandard property in the same neighborhood. This is a
statement relating to value and is known as the principle of: - ANSWER Regression
If the demand for houses remains constant, whereas the supply of housing: -
ANSWER Diminishes, the value should increase
Market value is: - ANSWER The price a willing seller will accept and a willing
purchaser will pay
The amount of money which would be paid by a buyer to a seller for property; both buyer
and seller being ready, willing, and able to act and both being fully informed, represents that
property's: - ANSWER Market value
The most important factor needed to maintain the value of residential property is: -
ANSWER Homes in the area conform in size, age, condition, value and style
Demand is one of the elements that help determine value. In order for demand to be
effective, it must be implemented by: - ANSWER Purchasing power
The income that is ascribable to land under its highest and best use is referred to as: -
ANSWER Economic or market rent
Contract rent is: - ANSWER The actual rent received
In a properly developed community, values are upheld by: - ANSWER Conformity to
land use objectives
An owner of a hardware store leased a building for 20 years at a flat rate of rental. After 10
years, the economic rent for the building has increased substantially over the contract rent.
3
A property at its highest and best use will: - ANSWER Produce the greatest net
income over a period of time
A well done appraisal, including consideration of all available data, and completed by an
appraiser of much experience and good judgment, is best defined as: - ANSWER An
opinion
As a concept of value, the highest and best use is the use that: - ANSWER Produces
the greatest net return on the investment
Smith owns an older home on a corner lot. A professional appraiser advised him that
considerably more income could be obtained if the house were torn down and a different
improvement placed upon the lot. This illustrates the principle of: -
ANSWER Highest and best use
Which best describes the highest and best use of property? - ANSWER The use that
will produce the highest net income
The addition to total property value produced by an additional property component is
considered to have resulted from the: - ANSWER Principle of contribution
A 'real estate appraisal' is an estimate of value: - ANSWER Based upon analysis of
facts as of a specific date
1
,In a real estate analysis one should be more interested in: - ANSWER Future
economic life of the improvements
Which of the following tends to lower property values? - ANSWER Deferred
maintenance
Which of the following is not a characteristic of value? - ANSWER Cost
The value of a piece of land: - ANSWER Is an estimate of the present worth of future
benefits
If the rezoning of a property results in the sudden increase of its value, this increase would
be known as: - ANSWER Unearned increment
If a person constructed a high quality home costing $100,000 in a neighborhood where
other homes were valued at $50,000, there would be an immediate loss in value. This type
of loss in value is called: - ANSWER Regression
Construction of homes costing $90,000 in an area of homes valued at $40,000 would affect
the lesser value homes in accordance with the principle of: - ANSWER Progression
To realize the maximum value of property, a reasonable degree of sociological and economic
homogeneity is necessary, but it should not become monotonously uniform. In real estate,
this concept is called the principle of: - ANSWER Conformity
If effective demand for real property in an area remains about the same, over time, the
market price will tend to: - ANSWER Rise when supply decreases
2
, The value of the best property in the neighborhood will be adversely affected by the
presence of comparatively substandard property in the same neighborhood. This is a
statement relating to value and is known as the principle of: - ANSWER Regression
If the demand for houses remains constant, whereas the supply of housing: -
ANSWER Diminishes, the value should increase
Market value is: - ANSWER The price a willing seller will accept and a willing
purchaser will pay
The amount of money which would be paid by a buyer to a seller for property; both buyer
and seller being ready, willing, and able to act and both being fully informed, represents that
property's: - ANSWER Market value
The most important factor needed to maintain the value of residential property is: -
ANSWER Homes in the area conform in size, age, condition, value and style
Demand is one of the elements that help determine value. In order for demand to be
effective, it must be implemented by: - ANSWER Purchasing power
The income that is ascribable to land under its highest and best use is referred to as: -
ANSWER Economic or market rent
Contract rent is: - ANSWER The actual rent received
In a properly developed community, values are upheld by: - ANSWER Conformity to
land use objectives
An owner of a hardware store leased a building for 20 years at a flat rate of rental. After 10
years, the economic rent for the building has increased substantially over the contract rent.
3
