TEXAS PRINCIPLES OF REAL ESTATE 2 WITH QUESTIONS AND
Texas Principles of Real Estate 2
ANSWERS (VERIFIED AND DETAILED ANSWERS) LATEST UPDATE
Study online at https://quizlet.com/_5vxe2x
2024/2025
1. The approach used as the best indicator of value for B
existing properties.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence
2. Refers to the loss in desirability of the style, layout, or A
function of an element of a property over time.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence
3. The price a willing seller will sell for, and the price a D
willing buyer will pay.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence
4. The legal use for property that gives the greatest re- C
turn in money and/or amenities.
a. functional obsolescence
b. sales comparison
c. highest and best use
, Texas Principles of Real Estate 2
Study online at https://quizlet.com/_5vxe2x
d. market value
e. external obsolescence
5. The loss in value of a property caused by factors out- E
side of the property itself.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence
6. The appraised value of a property is: B
a. The sale price
b. An opinion of value
c. A market analysis
d. The market value of a property
7. A "lite" appraisal is often referred to as a(n): A
a. Drive-by appraisal
b. Full appraisal
c. Appraisal review
d. Summary appraisal
8. In the appraisal report, the property being appraised D
is referred to as the ___________________.
a. Target property
b. Comparable property
c. Sold property
d. Subject property
, Texas Principles of Real Estate 2
Study online at https://quizlet.com/_5vxe2x
9. A homeowner added a swimming pool to a home at a D
cost of $75,000. During an appraisal, the appraiser de-
termined that the pool added $55,000 to the value of
the property. In this case, the appraiser was applying
the principle of _______________ in the analysis.
a. Anticipation
b. Change
c. Substitution
d. Contribution
10. An appraisal has a limited "shelf life" because of the B
principle of __________________.
a. Anticipation
b. Change
c. Substitution
d. Contribution
11. The legal use of a property that gives the greatest B
return in money and/or amenities is known as the
property's _______________.
a. Net adjusted value
b. Highest and best use
c. Going concern value
d. Assessed value
12. The value of a property can automatically be inferred B
from the prices at which other similar properties have
sold.
, Texas Principles of Real Estate 2
Study online at https://quizlet.com/_5vxe2x
a. True
b. False
13. ____________________ is the most probable price a prop- D
erty should bring in a competitive and open market
under all conditions requisite to a fair sale.
a. Sales price
b. Business value
c. Assessed value
d. Market value
14. The chronological age of a property is: A
a. The actual age of the property
b. The age of the property based upon is current con-
dition
c. The age of the property as estimated by an appraisal
district
d. The actual age of the property minus the number of
years remaining on a mortgage
15. In a neighborhood of homes that primarily have three C
or four bedrooms and two or more baths, an apprais-
er adjusts the value of a property downward because
it has three bedrooms and only one bath. This adjust-
ment is an example of _____________________.
a. Physical deterioration
b. Economic obsolescence
c. Functional obsolescence
d. External obsolescence
Texas Principles of Real Estate 2
ANSWERS (VERIFIED AND DETAILED ANSWERS) LATEST UPDATE
Study online at https://quizlet.com/_5vxe2x
2024/2025
1. The approach used as the best indicator of value for B
existing properties.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence
2. Refers to the loss in desirability of the style, layout, or A
function of an element of a property over time.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence
3. The price a willing seller will sell for, and the price a D
willing buyer will pay.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence
4. The legal use for property that gives the greatest re- C
turn in money and/or amenities.
a. functional obsolescence
b. sales comparison
c. highest and best use
, Texas Principles of Real Estate 2
Study online at https://quizlet.com/_5vxe2x
d. market value
e. external obsolescence
5. The loss in value of a property caused by factors out- E
side of the property itself.
a. functional obsolescence
b. sales comparison
c. highest and best use
d. market value
e. external obsolescence
6. The appraised value of a property is: B
a. The sale price
b. An opinion of value
c. A market analysis
d. The market value of a property
7. A "lite" appraisal is often referred to as a(n): A
a. Drive-by appraisal
b. Full appraisal
c. Appraisal review
d. Summary appraisal
8. In the appraisal report, the property being appraised D
is referred to as the ___________________.
a. Target property
b. Comparable property
c. Sold property
d. Subject property
, Texas Principles of Real Estate 2
Study online at https://quizlet.com/_5vxe2x
9. A homeowner added a swimming pool to a home at a D
cost of $75,000. During an appraisal, the appraiser de-
termined that the pool added $55,000 to the value of
the property. In this case, the appraiser was applying
the principle of _______________ in the analysis.
a. Anticipation
b. Change
c. Substitution
d. Contribution
10. An appraisal has a limited "shelf life" because of the B
principle of __________________.
a. Anticipation
b. Change
c. Substitution
d. Contribution
11. The legal use of a property that gives the greatest B
return in money and/or amenities is known as the
property's _______________.
a. Net adjusted value
b. Highest and best use
c. Going concern value
d. Assessed value
12. The value of a property can automatically be inferred B
from the prices at which other similar properties have
sold.
, Texas Principles of Real Estate 2
Study online at https://quizlet.com/_5vxe2x
a. True
b. False
13. ____________________ is the most probable price a prop- D
erty should bring in a competitive and open market
under all conditions requisite to a fair sale.
a. Sales price
b. Business value
c. Assessed value
d. Market value
14. The chronological age of a property is: A
a. The actual age of the property
b. The age of the property based upon is current con-
dition
c. The age of the property as estimated by an appraisal
district
d. The actual age of the property minus the number of
years remaining on a mortgage
15. In a neighborhood of homes that primarily have three C
or four bedrooms and two or more baths, an apprais-
er adjusts the value of a property downward because
it has three bedrooms and only one bath. This adjust-
ment is an example of _____________________.
a. Physical deterioration
b. Economic obsolescence
c. Functional obsolescence
d. External obsolescence
