MCKISSOCK BASIC APPRAISAL PRINCIPLES
I ACTUAL EXAM PAPER 2026 COMPLETE
SOLUTIONS AND TESTED QUESTIONS
GRADED A+
⩥ Which is NOT an economic force?
wage rates
climate
expense levels
Consumer Price Index
Answer: Climate
⩥ A large good quality mansion is built in a market area where no one
can afford to purchase it. This demonstrates lack of
scarcity
effective purchasing power
desire
environmental regulations
Answer: effective purchasing power
⩥ There is a multiplier effect in that each job in a _______ industry
supports two to three jobs in the ________ industries.
,basic, service
heavy, light
service, basic
national, local
Answer: basic, service
⩥ An example of something that likely has no value in most situations is
air
a cup of pencils
a lot with hilly topography
a building that is in poor condition
Answer: air
⩥ Desire is one of the four elements of value. The other three are
____________, _____________, and ______________.
Answer: utility, scarcity, effective purchasing power
⩥ True or False? Cost and value are the same.
Answer: False
⩥ A property owner purchases a lot for $100,000 and pays $400,000 to
have a home constructed on it. When it is completed, the owner sells the
home for $560,000. The appraiser for the buyer's mortgage company
,appraises the home at $525,000. The appraiser's opinion of $525,000
represents the _________ of the property.
cost
value
price
all of these
Answer: Value
⩥ "The amount asked, offered, or paid for a property" is the definition of
value
cost
price
worth
Answer: Price
⩥ Exposure time is a _____________ developed by the appraiser.
prediction
statement of fact
personal opinion
retrospective opinion
Answer: retrospective opinion
, ⩥ What type of value is based on a specific use, which may or may not
be the property's highest and best use?
assessed value
value in exchange
value in use
book value
Answer: value in use
⩥ A comparable property was offered on the market for 12 months at
$229,000, with no offers. It was reduced to $219,000 and was on the
market for another 10 months. It was reduced again to $159,000 and it
sold for $156,000 in 4 months. What is the reasonable exposure time
indicated by this property?
4 months
14 months
22 months
26 months
Answer: 4 months
⩥ Which type of value begins with "the most probable price that a
property should sell for..."
assessed value
value in use
insurable value
I ACTUAL EXAM PAPER 2026 COMPLETE
SOLUTIONS AND TESTED QUESTIONS
GRADED A+
⩥ Which is NOT an economic force?
wage rates
climate
expense levels
Consumer Price Index
Answer: Climate
⩥ A large good quality mansion is built in a market area where no one
can afford to purchase it. This demonstrates lack of
scarcity
effective purchasing power
desire
environmental regulations
Answer: effective purchasing power
⩥ There is a multiplier effect in that each job in a _______ industry
supports two to three jobs in the ________ industries.
,basic, service
heavy, light
service, basic
national, local
Answer: basic, service
⩥ An example of something that likely has no value in most situations is
air
a cup of pencils
a lot with hilly topography
a building that is in poor condition
Answer: air
⩥ Desire is one of the four elements of value. The other three are
____________, _____________, and ______________.
Answer: utility, scarcity, effective purchasing power
⩥ True or False? Cost and value are the same.
Answer: False
⩥ A property owner purchases a lot for $100,000 and pays $400,000 to
have a home constructed on it. When it is completed, the owner sells the
home for $560,000. The appraiser for the buyer's mortgage company
,appraises the home at $525,000. The appraiser's opinion of $525,000
represents the _________ of the property.
cost
value
price
all of these
Answer: Value
⩥ "The amount asked, offered, or paid for a property" is the definition of
value
cost
price
worth
Answer: Price
⩥ Exposure time is a _____________ developed by the appraiser.
prediction
statement of fact
personal opinion
retrospective opinion
Answer: retrospective opinion
, ⩥ What type of value is based on a specific use, which may or may not
be the property's highest and best use?
assessed value
value in exchange
value in use
book value
Answer: value in use
⩥ A comparable property was offered on the market for 12 months at
$229,000, with no offers. It was reduced to $219,000 and was on the
market for another 10 months. It was reduced again to $159,000 and it
sold for $156,000 in 4 months. What is the reasonable exposure time
indicated by this property?
4 months
14 months
22 months
26 months
Answer: 4 months
⩥ Which type of value begins with "the most probable price that a
property should sell for..."
assessed value
value in use
insurable value
