REE 4103 EXAM 1 Exam Questions and
Answers (Verified Answers) Most Recent
exam COMPLETE (2026) (Latest Update
2026) UPDATE!!
The concepts of land are -CORRECTANSWER Legal, geographic and environmental,
economic, and social.
For appraisal purposes, market value may be defined as -CORRECTANSWER The
most probable selling price
Appraisal is -CORRECTANSWER The act or process of developing an opinion of value.
What is Chattel? -CORRECTANSWER Personal property is generally considered
property that is movable,[1] as opposed to real property or real estate.
What is a fixture? -CORRECTANSWER any physical property that is permanently
attached (fixed) to real property (usually land). Considered part of the land itself and not
a separate piece of property. Generally speaking the test for deciding whether an article
is a fixture or a chattel turns on the purpose of attachment. If the purpose was to
enhance the land the article is likely a fixture. Fixtures are included in the appraisal
report. Ask the client if an item is a fixture or not
,What is a trade fixture? -CORRECTANSWER an article that is owned and attached to a
rented space or building by a tenant and used in conducting a business. Trade fixtures
are not included in the appraisal report.
The tenant of a small, freestanding retail building is a baker who has installed ovens for
baking bread. The ovens are large and heavy and the back wall of the building had to
be removed for the ovens to be installed. The appraiser is performing a refinancing
appraisal of the real estate only. Should the ovens be included in the appraisal? -
CORRECTANSWER The appraiser generally would not include the ovens because
they are trade fixtures.
An appraiser may be liable for all of the following except -CORRECTANSWER Low
value. An appraiser is liable for negligence, misrepresentation, and fraud but not low
value as it is an opinion of value not fact.
The amount of a type of real estate available for sale or lease at various prices in a
given market at a given time is the -CORRECTANSWER Supply
Factors outside a property that exert both positive and negative influences on the
property's value -CORRECTANSWER Externalities
The amount of a type of real estate desired for purchase or rent at various prices in a
given market for a given period of time is the -CORRECTANSWER Demand
, The perception that value is created by the expectation of benefits to be derived in the
future -CORRECTANSWER Anticipation. Also the income approach
What is Price -CORRECTANSWER Refers to the amount a particular purchaser agrees
to pay and a particular seller agrees to accept in a transaction
What is Cost? -CORRECTANSWER Refers to the production/construction not the
amount paid in exchange
This appraisal principle that states that when several similar or commensurate
commodities, goods, or services are available, the one with the lowest price will attract
the greatest demand and widest distribution -CORRECTANSWER Substitution
Substitution -CORRECTANSWER Property values tend to be set by the price of
acquiring an equally desirable substitute property.A buyer will not pay more for one
property than for another that is equally desirable.This is the primary principle upon
which the cost and sales comparison approaches are based.
The result of the cause and effect relationship among the forces that influence real
property value -CORRECTANSWER Change
Answers (Verified Answers) Most Recent
exam COMPLETE (2026) (Latest Update
2026) UPDATE!!
The concepts of land are -CORRECTANSWER Legal, geographic and environmental,
economic, and social.
For appraisal purposes, market value may be defined as -CORRECTANSWER The
most probable selling price
Appraisal is -CORRECTANSWER The act or process of developing an opinion of value.
What is Chattel? -CORRECTANSWER Personal property is generally considered
property that is movable,[1] as opposed to real property or real estate.
What is a fixture? -CORRECTANSWER any physical property that is permanently
attached (fixed) to real property (usually land). Considered part of the land itself and not
a separate piece of property. Generally speaking the test for deciding whether an article
is a fixture or a chattel turns on the purpose of attachment. If the purpose was to
enhance the land the article is likely a fixture. Fixtures are included in the appraisal
report. Ask the client if an item is a fixture or not
,What is a trade fixture? -CORRECTANSWER an article that is owned and attached to a
rented space or building by a tenant and used in conducting a business. Trade fixtures
are not included in the appraisal report.
The tenant of a small, freestanding retail building is a baker who has installed ovens for
baking bread. The ovens are large and heavy and the back wall of the building had to
be removed for the ovens to be installed. The appraiser is performing a refinancing
appraisal of the real estate only. Should the ovens be included in the appraisal? -
CORRECTANSWER The appraiser generally would not include the ovens because
they are trade fixtures.
An appraiser may be liable for all of the following except -CORRECTANSWER Low
value. An appraiser is liable for negligence, misrepresentation, and fraud but not low
value as it is an opinion of value not fact.
The amount of a type of real estate available for sale or lease at various prices in a
given market at a given time is the -CORRECTANSWER Supply
Factors outside a property that exert both positive and negative influences on the
property's value -CORRECTANSWER Externalities
The amount of a type of real estate desired for purchase or rent at various prices in a
given market for a given period of time is the -CORRECTANSWER Demand
, The perception that value is created by the expectation of benefits to be derived in the
future -CORRECTANSWER Anticipation. Also the income approach
What is Price -CORRECTANSWER Refers to the amount a particular purchaser agrees
to pay and a particular seller agrees to accept in a transaction
What is Cost? -CORRECTANSWER Refers to the production/construction not the
amount paid in exchange
This appraisal principle that states that when several similar or commensurate
commodities, goods, or services are available, the one with the lowest price will attract
the greatest demand and widest distribution -CORRECTANSWER Substitution
Substitution -CORRECTANSWER Property values tend to be set by the price of
acquiring an equally desirable substitute property.A buyer will not pay more for one
property than for another that is equally desirable.This is the primary principle upon
which the cost and sales comparison approaches are based.
The result of the cause and effect relationship among the forces that influence real
property value -CORRECTANSWER Change
