1
REAL ESTATE INVESTMENT ANALYSIS EXAM QUESTIONS
AND ANSWERS 2026 LATEST VERSION
NOTE: Questions not numbered in order
101. Two homes in the same addition have the same amenities, size, features, and
location. One is priced at P1,000,000 and the other is priced at P1,100,000.
a. The lower-priced home will sell quickly.
b. The lower-priced home will attract more demand.
c. The lower-priced home will get more showings.
d. The lower-priced home will sell for the full list price.
102. In a high demand market, the cost of building a new property will increase
substantially until
a. It becomes impossible for prices to go higher
b. The supply increases because new builders get into the market
c. The charges from suppliers and subcontractors go down
d. The BSP increases interest rates
103. The four forces that influence real estate values are
a. Social, economic, governmental, and environmental
b. Land, labor, capital, and green space
c. Eminent domain, police power, escheat, and taxation
d. Governmental, social, taxation, and economic conditions 19
104. Synergy or Plottage is
a. The process whereby large parcels of land are divided into lots and recorded in the
register of deeds
b. Is the assemblage of two or more parcels of land
c. Is the name of the discount given when larger parcels sell for more per hectare than
smaller ones
d. An incremental increase of value that results when two or more sites are
combined to produce greater utility
,2
105. The length of a tract of land along a street is called the land’s
a. depth c. frontage
b. width d. abutment
106. Refers to prices or values of land adjacent to or “across the fence” from railroad,
pipeline, highway or other corridor real estate.
a. buyer’s market c. corner influence
b. across the fence value d. property line
c. corner influence
107. A _______ is an article that was once personal property, but that has been
installed in or attached to land or a building so that such article is regarded in law as
part of the real estate.
a. Fixture c. domestic trade
b. Trade fixture d. all of the above
108. A trade fixture:
a. Contributes to the value of the property to which it is attached
b. Contributes nothing to the value of real estate
c. Is considered, but given no value by real estate appraisers
d. Both (b) and (c)
109. Which of the following courses would benefit a professional appraiser?
a. real estate finance, land use planning, real estate law
b. urban sociology, demographics, information systems
c. All of the above .
d. One of the above.
110. An appraisal may include a(n)
a. property description c. opinion of value
b. estimate of market value d. all of the above
111. The reliability of an appraisal depends on the
a. knowledge and judgment of the appraiser
b. accuracy of the data used
c. Both a and b.
d. Neither a nor b.
112. An appraisal of current market value is considered to be accurate for
a. 90 days c. one year 20
b. until the property is sold d. date of appraisal
, 3
113. Appraisals are always used
a. To make residential mortgages c. to settle lawsuit
b. To settle divorces d. to solve problem that involve real estate
values
114. What term is used to describe a study of the cost -benefit relationship of an
economic endeavor?
a. Investment analysis c. Feasibility analysis
b. Cash flow analysis d. Market analysis
115. The mayor of a small town recently hired you to estimate the value of a new one-
story, three- bay fire station. The fire station was built last year at a cost of P2.5 million
(land and buildings). Similar-size d, one year-old commercial buildings in comparable
locations are selling for P2 million. lf you appraise this building for approximately P2.5
million, you probably have conveyed
a. Market value c. actual use
b. Investment value d. value in transition
116. You were recently asked to appraise the Midnight blue hostel. The bank asked you
to value the property for loan purposes. The comparables sales you used in this
analysis were all sales of the entire operation. The income used in your calculation was
based on the rental rate of each sleeping room and the sales at the restaurant and the
bar. You are most likely appraising
a. Market value of the fee simple interest
b. Market value of the leased fee interest
c. Going-concern value
d. Value in use
117. Investment value is best measured by
b. Market price to a specific investor
c. Market value to a specific investor
d. The cost of acquiring a competitive substitute property with the same utility to a
typical purchaser
e. The present worth of anticipated future benefits to a specific investor
118. Estimating market value requires identification of the desires and priorities of
a. Well-informed buyers and sellers c. A typically informed purchaser
b. A fully informed seller d. A typically informed seller
119. Market value is based on
a. insurable value c. cost
b. most probable price d. value in use
REAL ESTATE INVESTMENT ANALYSIS EXAM QUESTIONS
AND ANSWERS 2026 LATEST VERSION
NOTE: Questions not numbered in order
101. Two homes in the same addition have the same amenities, size, features, and
location. One is priced at P1,000,000 and the other is priced at P1,100,000.
a. The lower-priced home will sell quickly.
b. The lower-priced home will attract more demand.
c. The lower-priced home will get more showings.
d. The lower-priced home will sell for the full list price.
102. In a high demand market, the cost of building a new property will increase
substantially until
a. It becomes impossible for prices to go higher
b. The supply increases because new builders get into the market
c. The charges from suppliers and subcontractors go down
d. The BSP increases interest rates
103. The four forces that influence real estate values are
a. Social, economic, governmental, and environmental
b. Land, labor, capital, and green space
c. Eminent domain, police power, escheat, and taxation
d. Governmental, social, taxation, and economic conditions 19
104. Synergy or Plottage is
a. The process whereby large parcels of land are divided into lots and recorded in the
register of deeds
b. Is the assemblage of two or more parcels of land
c. Is the name of the discount given when larger parcels sell for more per hectare than
smaller ones
d. An incremental increase of value that results when two or more sites are
combined to produce greater utility
,2
105. The length of a tract of land along a street is called the land’s
a. depth c. frontage
b. width d. abutment
106. Refers to prices or values of land adjacent to or “across the fence” from railroad,
pipeline, highway or other corridor real estate.
a. buyer’s market c. corner influence
b. across the fence value d. property line
c. corner influence
107. A _______ is an article that was once personal property, but that has been
installed in or attached to land or a building so that such article is regarded in law as
part of the real estate.
a. Fixture c. domestic trade
b. Trade fixture d. all of the above
108. A trade fixture:
a. Contributes to the value of the property to which it is attached
b. Contributes nothing to the value of real estate
c. Is considered, but given no value by real estate appraisers
d. Both (b) and (c)
109. Which of the following courses would benefit a professional appraiser?
a. real estate finance, land use planning, real estate law
b. urban sociology, demographics, information systems
c. All of the above .
d. One of the above.
110. An appraisal may include a(n)
a. property description c. opinion of value
b. estimate of market value d. all of the above
111. The reliability of an appraisal depends on the
a. knowledge and judgment of the appraiser
b. accuracy of the data used
c. Both a and b.
d. Neither a nor b.
112. An appraisal of current market value is considered to be accurate for
a. 90 days c. one year 20
b. until the property is sold d. date of appraisal
, 3
113. Appraisals are always used
a. To make residential mortgages c. to settle lawsuit
b. To settle divorces d. to solve problem that involve real estate
values
114. What term is used to describe a study of the cost -benefit relationship of an
economic endeavor?
a. Investment analysis c. Feasibility analysis
b. Cash flow analysis d. Market analysis
115. The mayor of a small town recently hired you to estimate the value of a new one-
story, three- bay fire station. The fire station was built last year at a cost of P2.5 million
(land and buildings). Similar-size d, one year-old commercial buildings in comparable
locations are selling for P2 million. lf you appraise this building for approximately P2.5
million, you probably have conveyed
a. Market value c. actual use
b. Investment value d. value in transition
116. You were recently asked to appraise the Midnight blue hostel. The bank asked you
to value the property for loan purposes. The comparables sales you used in this
analysis were all sales of the entire operation. The income used in your calculation was
based on the rental rate of each sleeping room and the sales at the restaurant and the
bar. You are most likely appraising
a. Market value of the fee simple interest
b. Market value of the leased fee interest
c. Going-concern value
d. Value in use
117. Investment value is best measured by
b. Market price to a specific investor
c. Market value to a specific investor
d. The cost of acquiring a competitive substitute property with the same utility to a
typical purchaser
e. The present worth of anticipated future benefits to a specific investor
118. Estimating market value requires identification of the desires and priorities of
a. Well-informed buyers and sellers c. A typically informed purchaser
b. A fully informed seller d. A typically informed seller
119. Market value is based on
a. insurable value c. cost
b. most probable price d. value in use
