NSAR SALESPERSON LICENSING COURSE 2025 QUESTIONS WITH COMPLETE SOLUTIONS!!
Subjective Value - (answer)the perception of value in the minds of the buyer and seller
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
,NSAR SALESPERSON LICENSING COURSE 2025 QUESTIONS WITH COMPLETE SOLUTIONS!!
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)
, NSAR SALESPERSON LICENSING COURSE 2025 QUESTIONS WITH COMPLETE SOLUTIONS!!
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 - (answer)No double dipping when analyzing value (can't give value to the
house on a commercial property worth building on; must be viewed together as you'd have to renovate
the house to use it commercially)
Principle of Contribution - (answer)Value relates to contribution; not cost (owner wants to put in a pool
that cost $10,000 but appraiser says it will only improve value of house by $7,000)
Principle of External Factors - (answer)Things nearby can influence value (two comparable houses
purchased on a quiet vs. noisy street = noisy street will have decreased value)
Principle of Highest and Best Use - (answer)Focus on the use that will produce the greatest return (look
at the property's current and potential use = large house on lot that a four-plex could be built; value can
increase based on this possibility)
Principle of Increasing/Decreasing Returns - (answer)More is not necessarily better (building one garage
may increase value, but building two more wont increase 3x; it reaches a point)
Principle of Progression - (answer)The smallest house on the street might be the best buy (when houses
aren't similar; the poorest property increases in value)
Subjective Value - (answer)the perception of value in the minds of the buyer and seller
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
,NSAR SALESPERSON LICENSING COURSE 2025 QUESTIONS WITH COMPLETE SOLUTIONS!!
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)
, NSAR SALESPERSON LICENSING COURSE 2025 QUESTIONS WITH COMPLETE SOLUTIONS!!
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 - (answer)No double dipping when analyzing value (can't give value to the
house on a commercial property worth building on; must be viewed together as you'd have to renovate
the house to use it commercially)
Principle of Contribution - (answer)Value relates to contribution; not cost (owner wants to put in a pool
that cost $10,000 but appraiser says it will only improve value of house by $7,000)
Principle of External Factors - (answer)Things nearby can influence value (two comparable houses
purchased on a quiet vs. noisy street = noisy street will have decreased value)
Principle of Highest and Best Use - (answer)Focus on the use that will produce the greatest return (look
at the property's current and potential use = large house on lot that a four-plex could be built; value can
increase based on this possibility)
Principle of Increasing/Decreasing Returns - (answer)More is not necessarily better (building one garage
may increase value, but building two more wont increase 3x; it reaches a point)
Principle of Progression - (answer)The smallest house on the street might be the best buy (when houses
aren't similar; the poorest property increases in value)
