BASIC APPRAISAL PROCEDURES – MCKISSOCK TEST EXAM LATEST 2026
UPDATED QUESTIONS AND VERIFIED 100% SOLUTIONS (2026/2027)
|A+ GRADED |GUARANTEED PASS
Economic Life - Answers -The period over which improvements to real property contribute to
property value.
Useful Life - Answers -The period of time over which a structure may reasonably be expected to
perform the function for which it was designed.
Physical Life - Answers -The total period a building lasts or is expected to last as opposed to its
economic life.
Actual Age - Answers -The number of years that have elapsed since construction of an
improvement was completed; also called historical or chronological age.
Effective Age - Answers -The age of property that is based on the amount of observed
deterioration and obsolescence it has sustained, which may be different from its chronological
age.
Remaining Economic Life - Answers -The estimated period during which improvements will
continue to represent the highest and best use of the property; an estimate of the number of
years remaining in the economic life of the structure or structural components as of the date of
the appraisal; used in the economic age-life method of estimating depreciation.
1|Page
,Age-Life Method - Answers -Effective age
————————— X total cost =
Total Economic Life
Depreciation
Curable Depreciation - Answers -Items of physical deterioration or functional obsolescence that
are economically feasible to cure. Economic feasibility is indicated if the cost to cure is equal to
or less than the anticipated increase in the value of the property.
Breakdown Method - Answers -It breaks down depreciation into its component parts of physical
deterioration, functional obsolescence and external obsolescence and measures each
individually
Deferred Maintenance - Answers -Needed repairs or replacement of items that should have
taken place during the course of normal maintenance.
Short-Lived Items - Answers -A building component with an expected remaining economic life
that is shorter than the remaining economic life of the entire structure.
2|Page
, Long-Lived Items - Answers -A building component with an expected remaining economic life
that is the same as the remaining economic life of the entire structure.
Functional Utility - Answers -The ability of a property or building to be useful and to perform the
function for which it is intended according to current market tastes and standards; the efficiency
of a building's use in terms of architectural style, design and layout, traffic patterns, and the size
and type of rooms.
Sales Comparison Approach - Answers -The process of deriving a value indication for the subject
property by comparing market information for similar properties with the property being
appraised, identifying appropriate units of comparison, and making qualitative comparisons
with or quantitative adjustments to the sale prices (or unit prices, as appropriate) of the
comparable properties based on relevant, market-derived elements of comparison.
Principle of Substitution - Answers -The appraisal principle that states that when several similar
or commensurate commodities, goods, or services are available, the one with the lowest price
will attract the greatest demand and widest distribution. This is the primary principle upon
which the cost and sales comparison approaches are based.
Principle of Contribution - Answers -The concept that the value of a particular component is
measured in terms of its contribution to the value of the whole property, or as the amount that
its absence would detract from the value of the whole.
Neighborhood - Answers -A group of complementary land uses; a congruous grouping of
inhabitants, buildings, or business enterprises.
3|Page
UPDATED QUESTIONS AND VERIFIED 100% SOLUTIONS (2026/2027)
|A+ GRADED |GUARANTEED PASS
Economic Life - Answers -The period over which improvements to real property contribute to
property value.
Useful Life - Answers -The period of time over which a structure may reasonably be expected to
perform the function for which it was designed.
Physical Life - Answers -The total period a building lasts or is expected to last as opposed to its
economic life.
Actual Age - Answers -The number of years that have elapsed since construction of an
improvement was completed; also called historical or chronological age.
Effective Age - Answers -The age of property that is based on the amount of observed
deterioration and obsolescence it has sustained, which may be different from its chronological
age.
Remaining Economic Life - Answers -The estimated period during which improvements will
continue to represent the highest and best use of the property; an estimate of the number of
years remaining in the economic life of the structure or structural components as of the date of
the appraisal; used in the economic age-life method of estimating depreciation.
1|Page
,Age-Life Method - Answers -Effective age
————————— X total cost =
Total Economic Life
Depreciation
Curable Depreciation - Answers -Items of physical deterioration or functional obsolescence that
are economically feasible to cure. Economic feasibility is indicated if the cost to cure is equal to
or less than the anticipated increase in the value of the property.
Breakdown Method - Answers -It breaks down depreciation into its component parts of physical
deterioration, functional obsolescence and external obsolescence and measures each
individually
Deferred Maintenance - Answers -Needed repairs or replacement of items that should have
taken place during the course of normal maintenance.
Short-Lived Items - Answers -A building component with an expected remaining economic life
that is shorter than the remaining economic life of the entire structure.
2|Page
, Long-Lived Items - Answers -A building component with an expected remaining economic life
that is the same as the remaining economic life of the entire structure.
Functional Utility - Answers -The ability of a property or building to be useful and to perform the
function for which it is intended according to current market tastes and standards; the efficiency
of a building's use in terms of architectural style, design and layout, traffic patterns, and the size
and type of rooms.
Sales Comparison Approach - Answers -The process of deriving a value indication for the subject
property by comparing market information for similar properties with the property being
appraised, identifying appropriate units of comparison, and making qualitative comparisons
with or quantitative adjustments to the sale prices (or unit prices, as appropriate) of the
comparable properties based on relevant, market-derived elements of comparison.
Principle of Substitution - Answers -The appraisal principle that states that when several similar
or commensurate commodities, goods, or services are available, the one with the lowest price
will attract the greatest demand and widest distribution. This is the primary principle upon
which the cost and sales comparison approaches are based.
Principle of Contribution - Answers -The concept that the value of a particular component is
measured in terms of its contribution to the value of the whole property, or as the amount that
its absence would detract from the value of the whole.
Neighborhood - Answers -A group of complementary land uses; a congruous grouping of
inhabitants, buildings, or business enterprises.
3|Page
