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ABBE Level 6 Certificate in Residential Valuation
Practice Exam (Case Studies)||Verified Questions with
Correct Answers and explanations LATEST THIS
YEAR -JUST RELEASED.pdf|| NEWEST EXAM!!!
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
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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
A property at its highest and best use will: - Answer-
Produce the greatest net income over a period of time
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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
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
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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
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
ABBE Level 6 Certificate in Residential Valuation
Practice Exam (Case Studies)||Verified Questions with
Correct Answers and explanations LATEST THIS
YEAR -JUST RELEASED.pdf|| NEWEST EXAM!!!
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
,2|Page
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
A property at its highest and best use will: - Answer-
Produce the greatest net income over a period of time
,3|Page
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
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
, 4|Page
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
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
