TEXAS SAE;REAL ESTATE APPRAISAL EXAM
ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
Which value-influencing DUST factor addresses the ease with which the property can be
conveyed to another? - ANSWER Transferability
Which of the following formulas is used with the index method to find the reproduction
cost? - ANSWER Present index ÷ Index at time of construction x Original cost =
Present cost
To arrive at the present cost, the appraiser applies a factor that represents the costs of
construction over time up to the appraisal date (present index ÷ index at time of
construction) multiplied by the subject building's original cost.
When possible, comparable sales from ______ should be used. - ANSWER The same
neighborhood
Ownership in a planned unit development consists of ______. - ANSWER A parcel of
land, the structures on it, and shared common areas
In what way is taxation an inherent burden on private landownership? -
ANSWER Unpaid taxes become a lien against the property.
Bianca wants to buy a cooperative, but she's unsure that she can afford it. With a
cooperative, her share of mortgage interest and real estate taxes will be ______. -
ANSWER Deductible on her personal income tax returns
As the resident in a cooperative, her share of mortgage interest and real estate taxes is
deductible on personal income tax returns.
1
,The Appraiser Independence Requirements protect which party or parties? -
ANSWER The appraiser, the lender, and the consumer
Using the gross income multiplier (GIM) valuation method, a property's sales price is divided
by its gross income. If a property has a sales price of $100,000 and gross income of $10,000,
what is its GIM? - ANSWER 10X (100,000/10,000)
Which professional is hired by the buyer and lender to give an opinion of value of the
property? - ANSWER Appraiser
Which of the following best describes how an appraiser reconciles the adjusted sales prices
of the comparable properties to indicate the value of the subject property? -
ANSWER The appraiser selects the adjusted sales price of the property most like the
subject to use as the indicated value.
What is the definition of an appraisal? - ANSWER An estimate of value for a specific
purpose, party, and property as of a specific date
Which of the following properties requires the appraiser to include information about the
monthly fees charged by the property management, the location of the subject property
within a community, and the areas considered private or public? - ANSWER Condo
Unit
If Mega Corporation owns real property, chances are it owns it in ______. -
ANSWER Severalty Ownership
Corporations own property owned in severalty, like individuals do.
James creates a trust to hold a piece of real estate he owns. He directs a corporate fiduciary
to hold title to the real estate and provides instructions for the management, control, and
2
,disposition of the real estate upon his death. Given that the trust only holds real estate,
James likely set up a(n) ______ trust. - ANSWER Land Trust
A land trust is similar to other trusts except that it's formed specifically to hold real estate.
The earth's surface, extending downward to the center of the earth and upward to infinity,
including permanently-attached natural objects, is called ______. - ANSWER This is a
definition of land.
Which of these is a written description of a blueprint? - ANSWER Building
specifications
explain the blueprint and any features that may not be visible on that building plan.
What method of land valuation converts the amount of yearly income a site will produce
into a value using a capitalization rate? - ANSWER Ground Rent Capitalization
Method (GRM)
As part of completing an appraisal using the cost approach method, what must appraisers
do? - ANSWER Complete the cost approach section of the URAR form
Which of the following analyzes net operating income (NOI) for a single year, and is used
when the property's income isn't expected to vary much over time?
The _method converts a single year's expected income (or an annual average) into a market
value. This is the expected return on investment the property is capable of producing in a
single year: the first year of ownership. - ANSWER Direct Capitalization
Real estate, plus all of the interests, benefits, and rights included in ownership, is also known
as ______. - ANSWER Real Property
3
, The US Census Bureau is a good source of what type of data needed by appraisers? -
ANSWER General Data
What's the term for certified energy-efficient homes that have met specific qualifications? -
ANSWER ENERGY STAR®-qualified home
The ______ system keeps air fresh by recycling air and removing odors and pollutants. -
ANSWER Ventilation
Which part of the cost approach equation is considered the most difficult part to estimate
accurately?
__is considered the most difficult part of the cost approach equation to estimate accurately,
partially because it can vary considerably based on specific market conditions as of the
appraisal date. In addition, a buyer's measure of depreciation can also vary quite a bit,
depending on the price range of homes in the local area. - ANSWER Accrued
Depreciation
When discounted cash flow analysis is used, what's discounted?
_is discounted to a present value when this method is used. - ANSWER Anticipated
future income
What guidelines must appraisers follow when completing the sales comparison section of
the URAR? - ANSWER The Uniform Appraisal Dataset (UAD) provides field-specific
instructions for the URAR used by Fannie Mae and Freddie Mac.
What are the three most common forms of legal descriptions? - ANSWER Metes and
bounds, lot and block, and rectangular government survey
Which of the following is a loss in value caused by wear and tear? -
ANSWER Physical Deterioration
4
ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
Which value-influencing DUST factor addresses the ease with which the property can be
conveyed to another? - ANSWER Transferability
Which of the following formulas is used with the index method to find the reproduction
cost? - ANSWER Present index ÷ Index at time of construction x Original cost =
Present cost
To arrive at the present cost, the appraiser applies a factor that represents the costs of
construction over time up to the appraisal date (present index ÷ index at time of
construction) multiplied by the subject building's original cost.
When possible, comparable sales from ______ should be used. - ANSWER The same
neighborhood
Ownership in a planned unit development consists of ______. - ANSWER A parcel of
land, the structures on it, and shared common areas
In what way is taxation an inherent burden on private landownership? -
ANSWER Unpaid taxes become a lien against the property.
Bianca wants to buy a cooperative, but she's unsure that she can afford it. With a
cooperative, her share of mortgage interest and real estate taxes will be ______. -
ANSWER Deductible on her personal income tax returns
As the resident in a cooperative, her share of mortgage interest and real estate taxes is
deductible on personal income tax returns.
1
,The Appraiser Independence Requirements protect which party or parties? -
ANSWER The appraiser, the lender, and the consumer
Using the gross income multiplier (GIM) valuation method, a property's sales price is divided
by its gross income. If a property has a sales price of $100,000 and gross income of $10,000,
what is its GIM? - ANSWER 10X (100,000/10,000)
Which professional is hired by the buyer and lender to give an opinion of value of the
property? - ANSWER Appraiser
Which of the following best describes how an appraiser reconciles the adjusted sales prices
of the comparable properties to indicate the value of the subject property? -
ANSWER The appraiser selects the adjusted sales price of the property most like the
subject to use as the indicated value.
What is the definition of an appraisal? - ANSWER An estimate of value for a specific
purpose, party, and property as of a specific date
Which of the following properties requires the appraiser to include information about the
monthly fees charged by the property management, the location of the subject property
within a community, and the areas considered private or public? - ANSWER Condo
Unit
If Mega Corporation owns real property, chances are it owns it in ______. -
ANSWER Severalty Ownership
Corporations own property owned in severalty, like individuals do.
James creates a trust to hold a piece of real estate he owns. He directs a corporate fiduciary
to hold title to the real estate and provides instructions for the management, control, and
2
,disposition of the real estate upon his death. Given that the trust only holds real estate,
James likely set up a(n) ______ trust. - ANSWER Land Trust
A land trust is similar to other trusts except that it's formed specifically to hold real estate.
The earth's surface, extending downward to the center of the earth and upward to infinity,
including permanently-attached natural objects, is called ______. - ANSWER This is a
definition of land.
Which of these is a written description of a blueprint? - ANSWER Building
specifications
explain the blueprint and any features that may not be visible on that building plan.
What method of land valuation converts the amount of yearly income a site will produce
into a value using a capitalization rate? - ANSWER Ground Rent Capitalization
Method (GRM)
As part of completing an appraisal using the cost approach method, what must appraisers
do? - ANSWER Complete the cost approach section of the URAR form
Which of the following analyzes net operating income (NOI) for a single year, and is used
when the property's income isn't expected to vary much over time?
The _method converts a single year's expected income (or an annual average) into a market
value. This is the expected return on investment the property is capable of producing in a
single year: the first year of ownership. - ANSWER Direct Capitalization
Real estate, plus all of the interests, benefits, and rights included in ownership, is also known
as ______. - ANSWER Real Property
3
, The US Census Bureau is a good source of what type of data needed by appraisers? -
ANSWER General Data
What's the term for certified energy-efficient homes that have met specific qualifications? -
ANSWER ENERGY STAR®-qualified home
The ______ system keeps air fresh by recycling air and removing odors and pollutants. -
ANSWER Ventilation
Which part of the cost approach equation is considered the most difficult part to estimate
accurately?
__is considered the most difficult part of the cost approach equation to estimate accurately,
partially because it can vary considerably based on specific market conditions as of the
appraisal date. In addition, a buyer's measure of depreciation can also vary quite a bit,
depending on the price range of homes in the local area. - ANSWER Accrued
Depreciation
When discounted cash flow analysis is used, what's discounted?
_is discounted to a present value when this method is used. - ANSWER Anticipated
future income
What guidelines must appraisers follow when completing the sales comparison section of
the URAR? - ANSWER The Uniform Appraisal Dataset (UAD) provides field-specific
instructions for the URAR used by Fannie Mae and Freddie Mac.
What are the three most common forms of legal descriptions? - ANSWER Metes and
bounds, lot and block, and rectangular government survey
Which of the following is a loss in value caused by wear and tear? -
ANSWER Physical Deterioration
4
