NSAR SALESPERSON LICENSING UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE
●● Objective Value
Answer: related to the direct cost of creating (e.g. acquiring a lot and
building a home)
●● Types of value found in the Canadian Economy
Answer: -insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
●● Three approaches that appraisers use to establish an estimate of value
Answer: -cost approach (actual cost)
-income approach (subjective value)
-direct comparison approach (subjective value)
,●● market price
Answer: the price for an individual property
●● market value (aka value in exchange)
Answer: an estimate of value arising from many sales (market prices)
●● Definition of Market Value
Answer: The most probable price, as of a specified date, in cash, or in
terms equivalent to cash or in other precisely revealed terms, for which
the specified property rights should sell after reasonable exposure in a
competitive market under all conditions requisite to a fair-sale, with the
buyer and seller each acting prudently, knowledgeably, and for self-
interest, and assuming that neither is under undue duress.
●● What brokerage should you join after you pass this exam? Let's chat!
Answer: Instagram: @laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
●● The 4 assumptions of market value
Answer: 1) reasonable time
2) no undue pressure
3) prudent behaviour
,4) informed buyer and seller
●● 15 Principles of Value
Answer: - Principle of Anticipation
- Principle of Balance
- Principle of Change
- Principle of Competition
- Principle of Conformity
- Principle of Consistent Use
- Principle of Contribution
- Principle of External Factors
- Principle of Highest & Best Use
- Principle of Increasing/Decreasing Returns
- Principle of Progression
- Principle of Regression
- Principle of Substitution
- Principle of Supply & Demand
- Principle of Surplus
- Productivity
●● Principle of Anticipation
, Answer: Buyers buy the present worth of future benefits (e.g. thinking
about resale value)
●● Principle of Balance
Answer: Maximum value is maintained through balance (e.g. huge
house with only one car garage is not balanced)
●● Principle of Change
Answer: A value today is valid only for today (e.g. large portion of the
community will be losing their jobs = lower value of house as lower
demand)
●● Principle of Competition
Answer: Excess profit breeds ruinous competition (two people see same
opportunity and both jump in; neither will achieve their anticipated
profits)
●● Principle of Conformity
Answer: Reasonable conformance with existing standards protects value
(houses that conform with one another hold their value)
●● Principle of Consistent Use
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE
●● Objective Value
Answer: related to the direct cost of creating (e.g. acquiring a lot and
building a home)
●● Types of value found in the Canadian Economy
Answer: -insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
●● Three approaches that appraisers use to establish an estimate of value
Answer: -cost approach (actual cost)
-income approach (subjective value)
-direct comparison approach (subjective value)
,●● market price
Answer: the price for an individual property
●● market value (aka value in exchange)
Answer: an estimate of value arising from many sales (market prices)
●● Definition of Market Value
Answer: The most probable price, as of a specified date, in cash, or in
terms equivalent to cash or in other precisely revealed terms, for which
the specified property rights should sell after reasonable exposure in a
competitive market under all conditions requisite to a fair-sale, with the
buyer and seller each acting prudently, knowledgeably, and for self-
interest, and assuming that neither is under undue duress.
●● What brokerage should you join after you pass this exam? Let's chat!
Answer: Instagram: @laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
●● The 4 assumptions of market value
Answer: 1) reasonable time
2) no undue pressure
3) prudent behaviour
,4) informed buyer and seller
●● 15 Principles of Value
Answer: - Principle of Anticipation
- Principle of Balance
- Principle of Change
- Principle of Competition
- Principle of Conformity
- Principle of Consistent Use
- Principle of Contribution
- Principle of External Factors
- Principle of Highest & Best Use
- Principle of Increasing/Decreasing Returns
- Principle of Progression
- Principle of Regression
- Principle of Substitution
- Principle of Supply & Demand
- Principle of Surplus
- Productivity
●● Principle of Anticipation
, Answer: Buyers buy the present worth of future benefits (e.g. thinking
about resale value)
●● Principle of Balance
Answer: Maximum value is maintained through balance (e.g. huge
house with only one car garage is not balanced)
●● Principle of Change
Answer: A value today is valid only for today (e.g. large portion of the
community will be losing their jobs = lower value of house as lower
demand)
●● Principle of Competition
Answer: Excess profit breeds ruinous competition (two people see same
opportunity and both jump in; neither will achieve their anticipated
profits)
●● Principle of Conformity
Answer: Reasonable conformance with existing standards protects value
(houses that conform with one another hold their value)
●● Principle of Consistent Use
