RESIDENTIAL SALES COMPARISON EXAM 2026/2027
SCRIPT QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Partial Interest - ✔✔Any interest in real estate that one may have, other than the full
bundle of rights.
✔✔Qualitative Analysis - ✔✔A method used after an quantitative adjustments have
been applies that employs the appraiser's judgment in forming opinions relying on such
methods as relative comparison analysis, and/or personal interviews. The method
requires good judgement and reasoning skills of the appraiser.
✔✔Quantitative Adjustments - ✔✔A method that requires the recognition of the
differences between the comparable data and the subject property and assigning either
a market derived dollar or percentage amount as an adjustment.
✔✔Reconciliation - ✔✔Analyzing the values derived from the different appraisal
approaches to arrive at a final opinion of value
✔✔Regression Analysis - ✔✔A statistical measure that attempts to ascertain the source
of change in variables
✔✔Scatter Diagram - ✔✔Graphs used to study the relationship between two variables
✔✔Surplus Site - ✔✔A site that is not needed for the highest and best use of the
subject and does not have potential for sell-off or and antonomous highest and best
use.
✔✔Unit of Comparison - ✔✔A component with which a property can be divided for the
purpose of comparison such as square foot, living unit, etc.
✔✔Amortization - ✔✔Elimination of a debt with a series of equal payments (principle
and interest) at regular time intervals
✔✔Compound Interest - ✔✔Interest pain on previous earned interest based on the
original principle amount. The more frequent the compounding period and the higher the
effective interest rate, the greater the impact on the calculation
✔✔Discounting - ✔✔The process, by some investors, that uses the principles of TVM to
convert future income or cash flows into present value, at a specified interest rate.
✔✔Future Value - ✔✔Amount of money that an investment (either a single payment or
and annuity) at a fixed interest rate, for a specified period of time, will grow to in the
future.
, ✔✔Present Value - ✔✔An amount today that is equivalent to a future payment, or
series of payments (annuity), based on a specified interest rate, for a specific period of
time.
✔✔Reverse Polish Notation (RPN) - ✔✔A formal logic system used in the HP 12c
calculator that allows mathematical equations to be express by pressing the arithmetic
operations key (+,-,x,/) after the numbers, or variables, have been keyed.
✔✔Sinking Fund Factor - ✔✔Amount set aside on a periodic basis so that when a
compounded at a given interest rate for a defined ter, it will accumulate to a specified
future sum.
✔✔Time Value of Money (TVM) - ✔✔The concept that a dollar today is usually worth
more that receiving a dollar at some point in the future.
✔✔Contract Rent - ✔✔What a tenants are actually paying in rent, as stated in the terms
of the lease.
✔✔Debt Service - ✔✔The amount of funds required to make periodic payments of
principle and interest to the lender
✔✔Deficit Rent - ✔✔The resulting difference when the market rent exceeds the contract
rent
✔✔Effective Gross Income (EGI) - ✔✔Potential gross income, less vacancy and
collection losses
✔✔Excess Rent - ✔✔The resulting difference when the contract rent exceeds the
market rent
✔✔Fee Simple - ✔✔The greatest estate (ownership) one can have in real property; it is
freely transferable and inheritable, and of indefinite duration, with no conditions on the
title. Often called fee simple absolute or fee title
✔✔Fixed Expenses - ✔✔Ongoing operating expenses that do not vary based on
occupancy levels of the property (e.g. taxes and insurance).
✔✔Gross Income Multiplier (GIM) - ✔✔A factor that takes into account income derived
from all sources of a property (e.g. vending, storage units)
✔✔Gross Lease - ✔✔A property lease for which the landlord pays all expenses related
to the operation of the property
SCRIPT QUESTIONS AND SOLUTIONS GUARANTEE A+
✔✔Partial Interest - ✔✔Any interest in real estate that one may have, other than the full
bundle of rights.
✔✔Qualitative Analysis - ✔✔A method used after an quantitative adjustments have
been applies that employs the appraiser's judgment in forming opinions relying on such
methods as relative comparison analysis, and/or personal interviews. The method
requires good judgement and reasoning skills of the appraiser.
✔✔Quantitative Adjustments - ✔✔A method that requires the recognition of the
differences between the comparable data and the subject property and assigning either
a market derived dollar or percentage amount as an adjustment.
✔✔Reconciliation - ✔✔Analyzing the values derived from the different appraisal
approaches to arrive at a final opinion of value
✔✔Regression Analysis - ✔✔A statistical measure that attempts to ascertain the source
of change in variables
✔✔Scatter Diagram - ✔✔Graphs used to study the relationship between two variables
✔✔Surplus Site - ✔✔A site that is not needed for the highest and best use of the
subject and does not have potential for sell-off or and antonomous highest and best
use.
✔✔Unit of Comparison - ✔✔A component with which a property can be divided for the
purpose of comparison such as square foot, living unit, etc.
✔✔Amortization - ✔✔Elimination of a debt with a series of equal payments (principle
and interest) at regular time intervals
✔✔Compound Interest - ✔✔Interest pain on previous earned interest based on the
original principle amount. The more frequent the compounding period and the higher the
effective interest rate, the greater the impact on the calculation
✔✔Discounting - ✔✔The process, by some investors, that uses the principles of TVM to
convert future income or cash flows into present value, at a specified interest rate.
✔✔Future Value - ✔✔Amount of money that an investment (either a single payment or
and annuity) at a fixed interest rate, for a specified period of time, will grow to in the
future.
, ✔✔Present Value - ✔✔An amount today that is equivalent to a future payment, or
series of payments (annuity), based on a specified interest rate, for a specific period of
time.
✔✔Reverse Polish Notation (RPN) - ✔✔A formal logic system used in the HP 12c
calculator that allows mathematical equations to be express by pressing the arithmetic
operations key (+,-,x,/) after the numbers, or variables, have been keyed.
✔✔Sinking Fund Factor - ✔✔Amount set aside on a periodic basis so that when a
compounded at a given interest rate for a defined ter, it will accumulate to a specified
future sum.
✔✔Time Value of Money (TVM) - ✔✔The concept that a dollar today is usually worth
more that receiving a dollar at some point in the future.
✔✔Contract Rent - ✔✔What a tenants are actually paying in rent, as stated in the terms
of the lease.
✔✔Debt Service - ✔✔The amount of funds required to make periodic payments of
principle and interest to the lender
✔✔Deficit Rent - ✔✔The resulting difference when the market rent exceeds the contract
rent
✔✔Effective Gross Income (EGI) - ✔✔Potential gross income, less vacancy and
collection losses
✔✔Excess Rent - ✔✔The resulting difference when the contract rent exceeds the
market rent
✔✔Fee Simple - ✔✔The greatest estate (ownership) one can have in real property; it is
freely transferable and inheritable, and of indefinite duration, with no conditions on the
title. Often called fee simple absolute or fee title
✔✔Fixed Expenses - ✔✔Ongoing operating expenses that do not vary based on
occupancy levels of the property (e.g. taxes and insurance).
✔✔Gross Income Multiplier (GIM) - ✔✔A factor that takes into account income derived
from all sources of a property (e.g. vending, storage units)
✔✔Gross Lease - ✔✔A property lease for which the landlord pays all expenses related
to the operation of the property
