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BASIC APPRAISAL PRINCIPLES- CH 5
Exam Questions And Answers |Latest 2025 |
Guaranteed Pass.
Anticipation - Answer✔an economic theroy that says value is created by the expectation of
future benifits.
arm's length transaction - Answer✔a transaction that occurred unser typical conditions in the
marketplace, where each of the parties is acting in its own besti nterest.
assemblage - Answer✔combining teo or more parcels of land into one larger parcel.
assessed value - Answer✔the amount of value that is used to calculate taxes due, usually
representing a percentage of the market value.
balance - Answer✔1.a supply-and -demand condition that exsist in the real estate market when
there are slightly more properties avalible than buyers. 2. the right mix of Capital,
Enterpreneurship/management, Labor, and Land that result in the best return on investment
from the land (remember; CELL) this determines the land's maxium productivity.
change - Answer✔a principle affecting value that says all factors influencing real estate-
Physical, Economic, Goverment, and Social (PEGS)-are constantly changing and thus property
value itself is subject to constant change.
competition - Answer✔two or more parties trying to obtain the same thing.
conformity - Answer✔an economic theroy that says a particular property achieves its maxium
value when surrounded by properties that are similar in style, fuction, and utility.
1|Page
BASIC APPRAISAL PRINCIPLES- CH 5
Exam Questions And Answers |Latest 2025 |
Guaranteed Pass.
Anticipation - Answer✔an economic theroy that says value is created by the expectation of
future benifits.
arm's length transaction - Answer✔a transaction that occurred unser typical conditions in the
marketplace, where each of the parties is acting in its own besti nterest.
assemblage - Answer✔combining teo or more parcels of land into one larger parcel.
assessed value - Answer✔the amount of value that is used to calculate taxes due, usually
representing a percentage of the market value.
balance - Answer✔1.a supply-and -demand condition that exsist in the real estate market when
there are slightly more properties avalible than buyers. 2. the right mix of Capital,
Enterpreneurship/management, Labor, and Land that result in the best return on investment
from the land (remember; CELL) this determines the land's maxium productivity.
change - Answer✔a principle affecting value that says all factors influencing real estate-
Physical, Economic, Goverment, and Social (PEGS)-are constantly changing and thus property
value itself is subject to constant change.
competition - Answer✔two or more parties trying to obtain the same thing.
conformity - Answer✔an economic theroy that says a particular property achieves its maxium
value when surrounded by properties that are similar in style, fuction, and utility.
1|Page
