NSAR SALESPERSON LICENSING COURSE | COMPLETE EXAM REVIEWER, PRACTICE QUESTIONS
& STUDY GUIDE 2026/2027
Subjective Value - ANS ✔✔the perception of value in the minds of the buyer and seller
Objective Value - ANS ✔✔related to the direct cost of creating (e.g. acquiring a lot and building
a home)
Types of value found in the Canadian Economy - ANS ✔✔-insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
Three approaches that appraisers use to establish an estimate of value - ANS ✔✔-cost approach
(actual cost)
-income approach (subjective value)
-direct comparison approach (subjective value)
market price - ANS ✔✔the price for an individual property
market value (aka value in exchange) - ANS ✔✔an estimate of value arising from many sales
(market prices)
Definition of Market Value - ANS ✔✔The most probable price, as of a specified date, in cash, or
in terms equivalent to cash or in other precisely revealed terms, for which the specified
,property rights should sell after reasonable exposure in a competitive market under all
conditions requisite to a fair-sale, with the buyer and seller each acting prudently,
knowledgeably, and for self-interest, and assuming that neither is under undue duress.
What brokerage should you join after you pass this exam? Let's chat! - ANS ✔✔Instagram:
@laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
The 4 assumptions of market value - ANS ✔✔1) reasonable time
2) no undue pressure
3) prudent behaviour
4) informed buyer and seller
15 Principles of Value - ANS ✔✔- Principle of Anticipation
- Principle of Balance
- Principle of Change
- Principle of Competition
- Principle of Conformity
- Principle of Consistent Use
- Principle of Contribution
- Principle of External Factors
- Principle of Highest & Best Use
- Principle of Increasing/Decreasing Returns
- Principle of Progression
- Principle of Regression
- Principle of Substitution
,- Principle of Supply & Demand
- Principle of Surplus
- Productivity
Principle of Anticipation - ANS ✔✔Buyers buy the present worth of future benefits (e.g. thinking
about resale value)
Principle of Balance - ANS ✔✔Maximum value is maintained through balance (e.g. huge house
with only one car garage is not balanced)
Principle of Change - ANS ✔✔A value today is valid only for today (e.g. large portion of the
community will be losing their jobs = lower value of house as lower demand)
Principle of Competition - ANS ✔✔Excess profit breeds ruinous competition (two people see
same opportunity and both jump in; neither will achieve their anticipated profits)
Principle of Conformity - ANS ✔✔Reasonable conformance with existing standards protects
value (houses that conform with one another hold their value)
Principle of Consistent Use - ANS ✔✔No double dipping when analyzing value (can't give value
to the house on a commercial property worth building on; must be viewed together as you'd
have to renovate the house to use it commercially)
Principle of Contribution - ANS ✔✔Value relates to contribution; not cost (owner wants to put
in a pool that cost $10,000 but appraiser says it will only improve value of house by $7,000)
Principle of External Factors - ANS ✔✔Things nearby can influence value (two comparable
houses purchased on a quiet vs. noisy street = noisy street will have decreased value)
, Principle of Highest and Best Use - ANS ✔✔Focus on the use that will produce the greatest
return (look at the property's current and potential use = large house on lot that a four-plex
could be built; value can increase based on this possibility)
Principle of Increasing/Decreasing Returns - ANS ✔✔More is not necessarily better (building
one garage may increase value, but building two more wont increase 3x; it reaches a point)
Principle of Progression - ANS ✔✔The smallest house on the street might be the best buy
(when houses aren't similar; the poorest property increases in value)
Principle of Regression - ANS ✔✔The largest house on the street might not be the best buy
(when houses aren't similar; the highest value home loses value due to it's neighbours)
Principle of Substitution - ANS ✔✔Buyers look for the best bang for their buck (they value a
home by comparing it to a substitute and choose the best priced one)
Principle of Supply and Demand - ANS ✔✔Market forces are always at work (supply decreases
value; demand increases value)
Principle of Surplus Productivity - ANS ✔✔Net income flows to the land (after all costs are
satisfied, the net income flows to land and establishes the value of that land)
Definition of Appraisal - ANS ✔✔The act or process of estimating value and providing an
opinion concerning that value.
8 Steps of the Appraisal Process - ANS ✔✔1) Define the problem
2) Preliminary inspection & planning the work
3) Data collection & analysis
4) Apply the cost approach
& STUDY GUIDE 2026/2027
Subjective Value - ANS ✔✔the perception of value in the minds of the buyer and seller
Objective Value - ANS ✔✔related to the direct cost of creating (e.g. acquiring a lot and building
a home)
Types of value found in the Canadian Economy - ANS ✔✔-insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
Three approaches that appraisers use to establish an estimate of value - ANS ✔✔-cost approach
(actual cost)
-income approach (subjective value)
-direct comparison approach (subjective value)
market price - ANS ✔✔the price for an individual property
market value (aka value in exchange) - ANS ✔✔an estimate of value arising from many sales
(market prices)
Definition of Market Value - ANS ✔✔The most probable price, as of a specified date, in cash, or
in terms equivalent to cash or in other precisely revealed terms, for which the specified
,property rights should sell after reasonable exposure in a competitive market under all
conditions requisite to a fair-sale, with the buyer and seller each acting prudently,
knowledgeably, and for self-interest, and assuming that neither is under undue duress.
What brokerage should you join after you pass this exam? Let's chat! - ANS ✔✔Instagram:
@laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
The 4 assumptions of market value - ANS ✔✔1) reasonable time
2) no undue pressure
3) prudent behaviour
4) informed buyer and seller
15 Principles of Value - ANS ✔✔- Principle of Anticipation
- Principle of Balance
- Principle of Change
- Principle of Competition
- Principle of Conformity
- Principle of Consistent Use
- Principle of Contribution
- Principle of External Factors
- Principle of Highest & Best Use
- Principle of Increasing/Decreasing Returns
- Principle of Progression
- Principle of Regression
- Principle of Substitution
,- Principle of Supply & Demand
- Principle of Surplus
- Productivity
Principle of Anticipation - ANS ✔✔Buyers buy the present worth of future benefits (e.g. thinking
about resale value)
Principle of Balance - ANS ✔✔Maximum value is maintained through balance (e.g. huge house
with only one car garage is not balanced)
Principle of Change - ANS ✔✔A value today is valid only for today (e.g. large portion of the
community will be losing their jobs = lower value of house as lower demand)
Principle of Competition - ANS ✔✔Excess profit breeds ruinous competition (two people see
same opportunity and both jump in; neither will achieve their anticipated profits)
Principle of Conformity - ANS ✔✔Reasonable conformance with existing standards protects
value (houses that conform with one another hold their value)
Principle of Consistent Use - ANS ✔✔No double dipping when analyzing value (can't give value
to the house on a commercial property worth building on; must be viewed together as you'd
have to renovate the house to use it commercially)
Principle of Contribution - ANS ✔✔Value relates to contribution; not cost (owner wants to put
in a pool that cost $10,000 but appraiser says it will only improve value of house by $7,000)
Principle of External Factors - ANS ✔✔Things nearby can influence value (two comparable
houses purchased on a quiet vs. noisy street = noisy street will have decreased value)
, Principle of Highest and Best Use - ANS ✔✔Focus on the use that will produce the greatest
return (look at the property's current and potential use = large house on lot that a four-plex
could be built; value can increase based on this possibility)
Principle of Increasing/Decreasing Returns - ANS ✔✔More is not necessarily better (building
one garage may increase value, but building two more wont increase 3x; it reaches a point)
Principle of Progression - ANS ✔✔The smallest house on the street might be the best buy
(when houses aren't similar; the poorest property increases in value)
Principle of Regression - ANS ✔✔The largest house on the street might not be the best buy
(when houses aren't similar; the highest value home loses value due to it's neighbours)
Principle of Substitution - ANS ✔✔Buyers look for the best bang for their buck (they value a
home by comparing it to a substitute and choose the best priced one)
Principle of Supply and Demand - ANS ✔✔Market forces are always at work (supply decreases
value; demand increases value)
Principle of Surplus Productivity - ANS ✔✔Net income flows to the land (after all costs are
satisfied, the net income flows to land and establishes the value of that land)
Definition of Appraisal - ANS ✔✔The act or process of estimating value and providing an
opinion concerning that value.
8 Steps of the Appraisal Process - ANS ✔✔1) Define the problem
2) Preliminary inspection & planning the work
3) Data collection & analysis
4) Apply the cost approach
