TEXAS SAE: REAL ESTATE APPRAISAL
EXAM QUESTIONS AND CORRECT
ANSWERS. VERIFIED 2025/2026.
Which value-influencing DUST factor addresses the ease with which the property can be
conveyed to another? - ANS Transferability
Which of the following formulas is used with the index method to find the reproduction cost? -
ANS 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. - ANS The same
neighborhood
Ownership in a planned unit development consists of ______. - ANS A parcel of land, the
structures on it, and shared common areas
In what way is taxation an inherent burden on private landownership? - ANS 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 ______. - ANS Deductible on her
personal income tax returns
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,As the resident in a cooperative, her share of mortgage interest and real estate taxes is
deductible on personal income tax returns.
The Appraiser Independence Requirements protect which party or parties? - ANS 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? - ANS 10X (100,000/10,000)
Which professional is hired by the buyer and lender to give an opinion of value of the property?
- ANS 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? - ANS 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? - ANS 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? - ANS Condo Unit
If Mega Corporation owns real property, chances are it owns it in ______. - ANS 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
disposition of the real estate upon his death. Given that the trust only holds real estate, James
likely set up a(n) ______ trust. - ANS Land Trust
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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 ______. - ANS This is a definition of
land.
Which of these is a written description of a blueprint? - ANS 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? - ANS Ground Rent Capitalization Method (GRM)
As part of completing an appraisal using the cost approach method, what must appraisers do? -
ANS 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. - ANS Direct Capitalization
Real estate, plus all of the interests, benefits, and rights included in ownership, is also known as
______. - ANS Real Property
The US Census Bureau is a good source of what type of data needed by appraisers? -
ANS General Data
What's the term for certified energy-efficient homes that have met specific qualifications? -
ANS ENERGY STAR®-qualified home
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND CORRECT
ANSWERS. VERIFIED 2025/2026.
Which value-influencing DUST factor addresses the ease with which the property can be
conveyed to another? - ANS Transferability
Which of the following formulas is used with the index method to find the reproduction cost? -
ANS 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. - ANS The same
neighborhood
Ownership in a planned unit development consists of ______. - ANS A parcel of land, the
structures on it, and shared common areas
In what way is taxation an inherent burden on private landownership? - ANS 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 ______. - ANS Deductible on her
personal income tax returns
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,As the resident in a cooperative, her share of mortgage interest and real estate taxes is
deductible on personal income tax returns.
The Appraiser Independence Requirements protect which party or parties? - ANS 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? - ANS 10X (100,000/10,000)
Which professional is hired by the buyer and lender to give an opinion of value of the property?
- ANS 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? - ANS 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? - ANS 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? - ANS Condo Unit
If Mega Corporation owns real property, chances are it owns it in ______. - ANS 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
disposition of the real estate upon his death. Given that the trust only holds real estate, James
likely set up a(n) ______ trust. - ANS Land Trust
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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 ______. - ANS This is a definition of
land.
Which of these is a written description of a blueprint? - ANS 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? - ANS Ground Rent Capitalization Method (GRM)
As part of completing an appraisal using the cost approach method, what must appraisers do? -
ANS 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. - ANS Direct Capitalization
Real estate, plus all of the interests, benefits, and rights included in ownership, is also known as
______. - ANS Real Property
The US Census Bureau is a good source of what type of data needed by appraisers? -
ANS General Data
What's the term for certified energy-efficient homes that have met specific qualifications? -
ANS ENERGY STAR®-qualified home
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
