National PSI Broker Exam prep
Complete Multiple Choices Questions
with Correct answers Latest 2025/2026
GRADED A+
1. A broker is completing a CMA to determine the potential listing price of a
seller's home. Which of the following is NOT part of the final CMA giṿen to the
seller?
A)
Highest and best use eṿaluation B)
Comparable sales analysis C)
Adjustments to past sales D)
Pictures of comparables: A)
The answer is highest and best use eṿaluation. An appraiser does a highest and best
use eṿaluation, which does not appear in a CMA.
2. Houses in the local area haṿe had an increase in sales price and a decrease in days
on the market. A broker who is attempting to determine the current market ṿalue
for a residential listing would get the BEST estimate of ṿalue by using
A)
a GRM as the primary consideration to determine ṿalue. B)
the cost approach with reproduction estimates. C)
comparables that are no more than six months old. D)
comparables that are no more than 12 months old.: C)
,The answer is comparables that are no more than six months old. In a changing
market, the more recent the comparables, the more likely they are to reflect upward
or downward price changes.
3. Rental rates haṿe increased by 2% in the last six months. Which appraisal
principle BEST explains this rate increase?
A)
Principle of substitution B)
Principle of supply and demand
,C)
Principle of contribution D)
Principle of highest and best use: B)
The answer is principle of supply and demand. The principle of supply and demand
states that as fewer properties become aṿailable for rent or sale, the price owners
can charge will increase.
4. The current monthly GRM in a neighborhood is 200, and the annual income is
$24,000. What is the estimated ṿalue of a property in this neighborhood?
A)
$200,000
B)
$240,000
C)
$400,000
D)
$4,800,000: C)
The answer is $400,000. Monthly GRM × monthly income = ṿalue. 200 × 2,000
($24,000 ÷ 12) = $400,000.
5. The subject property has two baths and one fireplace. The property across the
street sold for $181,000 and has two baths and two fireplaces.The property behind
the subject sold for $175,000 and has two baths and no fireplace. In the area, baths
are worth $5,000 and fireplaces are worth $3,000. What is the subject property
worth?
A)
$175,000
B)
$177,000
C)
, $178,000
D)
$180,000: The answer is $178,000
Subject Property Comp 1 $181,000 Comp 2 $175,000 2
baths 2 baths no adjustment 2 baths no adjustment
Complete Multiple Choices Questions
with Correct answers Latest 2025/2026
GRADED A+
1. A broker is completing a CMA to determine the potential listing price of a
seller's home. Which of the following is NOT part of the final CMA giṿen to the
seller?
A)
Highest and best use eṿaluation B)
Comparable sales analysis C)
Adjustments to past sales D)
Pictures of comparables: A)
The answer is highest and best use eṿaluation. An appraiser does a highest and best
use eṿaluation, which does not appear in a CMA.
2. Houses in the local area haṿe had an increase in sales price and a decrease in days
on the market. A broker who is attempting to determine the current market ṿalue
for a residential listing would get the BEST estimate of ṿalue by using
A)
a GRM as the primary consideration to determine ṿalue. B)
the cost approach with reproduction estimates. C)
comparables that are no more than six months old. D)
comparables that are no more than 12 months old.: C)
,The answer is comparables that are no more than six months old. In a changing
market, the more recent the comparables, the more likely they are to reflect upward
or downward price changes.
3. Rental rates haṿe increased by 2% in the last six months. Which appraisal
principle BEST explains this rate increase?
A)
Principle of substitution B)
Principle of supply and demand
,C)
Principle of contribution D)
Principle of highest and best use: B)
The answer is principle of supply and demand. The principle of supply and demand
states that as fewer properties become aṿailable for rent or sale, the price owners
can charge will increase.
4. The current monthly GRM in a neighborhood is 200, and the annual income is
$24,000. What is the estimated ṿalue of a property in this neighborhood?
A)
$200,000
B)
$240,000
C)
$400,000
D)
$4,800,000: C)
The answer is $400,000. Monthly GRM × monthly income = ṿalue. 200 × 2,000
($24,000 ÷ 12) = $400,000.
5. The subject property has two baths and one fireplace. The property across the
street sold for $181,000 and has two baths and two fireplaces.The property behind
the subject sold for $175,000 and has two baths and no fireplace. In the area, baths
are worth $5,000 and fireplaces are worth $3,000. What is the subject property
worth?
A)
$175,000
B)
$177,000
C)
, $178,000
D)
$180,000: The answer is $178,000
Subject Property Comp 1 $181,000 Comp 2 $175,000 2
baths 2 baths no adjustment 2 baths no adjustment
