REAL ESTATE APPRAISAL EXAM 2 PRACTICE QUESTIONS AND CORRECT ANSWERS 2026 COMPLETE APPRAISAL PRINCIPLES & PROCEDURES STUDY GUIDE LICENSED RESIDENTIAL APPRAISER EXAM PREP GRADE A+ STUDY RESOURCE

REAL ESTATE APPRAISAL EXAM 2
PRACTICE QUESTIONS AND CORRECT
ANSWERS 2026 COMPLETE APPRAISAL
PRINCIPLES & PROCEDURES STUDY
GUIDE LICENSED RESIDENTIAL
APPRAISER EXAM PREP GRADE A+ STUDY
RESOURCE



drinkable water, free of contamination, is called - CORRECT ANSWER -
potable water
T/F:

the sales comparison approach is based on the principle of substitution. -
CORRECT ANSWER -true


T/F:
the first step in the sales comparison approach is to research comparable
sales - CORRECT ANSWER -true


T/F:

the sales comparison approach has no statistical connections - CORRECT
ANSWER -false


T/F:

,in the analysis of sales transaction data, the actual date that the sale price
was agreed upon is the theoretical date of sale - CORRECT ANSWER -true


T/F:
USPAP requires that any listing or sale of the subject property around the
date of value be considered in the appraisal - CORRECT ANSWER -true


T/F:
a sale between the property owner and a tenant can be assumed to be an
open market transaction - CORRECT ANSWER -false


T/F:
even though listings and offers may be available, they are of no significant
use to an appraiser - CORRECT ANSWER -false


T/F:
sales data published and/or available online for the use of subscribing
appraisers is often generated by cooperating lenders and appraisers -
CORRECT ANSWER -true


T/F:
data resources on the internet provide general data on the economy and
regulatory information of use to the appraiser - CORRECT ANSWER -true


T/F:

, a neighborhood sales study finds selling prices of $150,000, $157,500,
$159,000, $162,000, and $164,000 for homes similar to the subject
property. The median price of this sample is $158,500. - CORRECT ANSWER
-false


T/F:
the four elemtns of comparison used in the sales comparison approach
include the terms and time of sale, as well as location and physical elements
about the property - CORRECT ANSWER -true


T/F:

sales adjustments should be market-related - CORRECT ANSWER -true


T/F:
two or more percentage adjustments should theoretically be multiplied
together (instead of added) when they are dependent upon each other -
CORRECT ANSWER -true


T/F:
units of comparison are dollar or percentage amounts that are added to, or
subtracted from, the comparable sales prices - CORRECT ANSWER -true


T/F:
to adjust the sales price of a comparable sale with a 10% better location, you
should add 10% to the price - CORRECT ANSWER -false, comparable better
subtract