Module 2 : Idaho Real Estate Exam 2026
Questions and Answers
Appraisal - Correct answer-The process of estimating and supporting an opinion of
value as of a certain date.
Market Value - Correct answer-A real estate appraiser estimates the market value
or fair market value
4 Characteristics of Demand - Correct answer-1. Demand
2. Utility
3. Scarcity
4. Transferability
Anticipation - Correct answer-The value of a property may increase or decrease
based on potential purchaser's belief that some future event will benefit or detract
from the value of the property
Change - Correct answer-Real estate conditions, both physical and economic, do
not remain constant and this in turn changes value
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,Competition - Correct answer-Competition results from the interaction between
supply and demand
Conformity - Correct answer-The maximum value for a property is reached when it
conforms to the surrounding land use
Contribution - Correct answer-The value of an improvement is equal to its
contribution to the added value of the property.
Increasing and Diminishing Returns - Correct answer-Returns refers to the
relationship between the cost of an improvement and the value it adds to the
property
Plottage - Correct answer-Combining or consolidating adjacent lots into one larger
lot, the resulting land value will be higher than the sum of the values of the
separate lots
Assemblage - Correct answer-The process of merging the lots
Regression - Correct answer-The value of a better property will be lessened by the
presence of poorer properties
Substitution - Correct answer-The maximum value of a property is equal to the
cost of purchasing or constructing equally desirable properties
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, Supply and Demand - Correct answer-Property values will be affected both by the
supply of property and by buyer demand for it
Topography - Correct answer-Builders prefer gently rolling land that looks more
appealing but is not so steep that it would increase development costs
Shape - Correct answer-Irregularly shaped lots are not as valuable as rectangular
lots
Size - Correct answer-The width and depth of the lot determines its potential uses
and affects its value
Exposure - Correct answer-How a lot is positioned to the light, air or view affects
its value
Soil - Correct answer-The ability of the ground to support a structure affects
construction costs
Corner Influence - Correct answer-A corner location has greater value for
commercial property
Location - Correct answer-This is the site of the property in relation to other uses
and physical features
Consumer Price Index (CPI) - Correct answer-Measures inflation
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Questions and Answers
Appraisal - Correct answer-The process of estimating and supporting an opinion of
value as of a certain date.
Market Value - Correct answer-A real estate appraiser estimates the market value
or fair market value
4 Characteristics of Demand - Correct answer-1. Demand
2. Utility
3. Scarcity
4. Transferability
Anticipation - Correct answer-The value of a property may increase or decrease
based on potential purchaser's belief that some future event will benefit or detract
from the value of the property
Change - Correct answer-Real estate conditions, both physical and economic, do
not remain constant and this in turn changes value
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Competition - Correct answer-Competition results from the interaction between
supply and demand
Conformity - Correct answer-The maximum value for a property is reached when it
conforms to the surrounding land use
Contribution - Correct answer-The value of an improvement is equal to its
contribution to the added value of the property.
Increasing and Diminishing Returns - Correct answer-Returns refers to the
relationship between the cost of an improvement and the value it adds to the
property
Plottage - Correct answer-Combining or consolidating adjacent lots into one larger
lot, the resulting land value will be higher than the sum of the values of the
separate lots
Assemblage - Correct answer-The process of merging the lots
Regression - Correct answer-The value of a better property will be lessened by the
presence of poorer properties
Substitution - Correct answer-The maximum value of a property is equal to the
cost of purchasing or constructing equally desirable properties
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, Supply and Demand - Correct answer-Property values will be affected both by the
supply of property and by buyer demand for it
Topography - Correct answer-Builders prefer gently rolling land that looks more
appealing but is not so steep that it would increase development costs
Shape - Correct answer-Irregularly shaped lots are not as valuable as rectangular
lots
Size - Correct answer-The width and depth of the lot determines its potential uses
and affects its value
Exposure - Correct answer-How a lot is positioned to the light, air or view affects
its value
Soil - Correct answer-The ability of the ground to support a structure affects
construction costs
Corner Influence - Correct answer-A corner location has greater value for
commercial property
Location - Correct answer-This is the site of the property in relation to other uses
and physical features
Consumer Price Index (CPI) - Correct answer-Measures inflation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
