AGB 212 CORRECT EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔eminent domain - ✔✔the right of government to take private property for public use
upon the payment of just compensation
✔✔real estate valuation - ✔✔the process of estimating market value, insurable value,
investment value, or some other properly defined value of an identified interest or
interest in a specific parcel of parcels of real estate as of a given date.
✔✔T/F: Appraisers determine the value of real estate. - ✔✔False. Appraisers provide
an opinion on the value of real estate.
✔✔3 Reasons an appraisal might be done - ✔✔loan evaluation, conservation
easement, and property value
✔✔3 examples of "bundles of rights" if you have a fee simple ownership of real property
- ✔✔right to use, right to demolish, and right to sell
✔✔4 agents of economic production and what do they earn - ✔✔Management-profit,
Land-Rent, Labor-wages, Capital-interest
✔✔Appurtenance - ✔✔the rights that transfer along with the property
✔✔Criteria of highest and best use - ✔✔physically possible, legal permissibility,
financial feasibility, maximum productivity
✔✔Calculate highest and best use - ✔✔land as vacant and property as improved
✔✔4 forces that effect property - ✔✔social, economic, government, and environmental
✔✔specific data of determining property value - ✔✔legal description, physical info,
zoning, and sales and income estimates
, ✔✔how many sections in a township - ✔✔36
✔✔dimension of township in miles - ✔✔6x6 miles
✔✔numbering of township - ✔✔6 5 4 3 2 1
7 8 9 10 11 12
18 17 16 15 14 13
19 20 21 22 23 24
30 29 28 27 26 25
31 32 33 34 35 36
✔✔how many acres in a section? - ✔✔640 acres
✔✔dimension of section in miles - ✔✔1x1 mile
✔✔dimension of section in ft - ✔✔5280x5280 ft
✔✔how many sqft in an acre? - ✔✔43,560
✔✔3 ways to identify a property - ✔✔address, APN, and legal description
✔✔3 types of legal description - ✔✔metes and bound, tract map, rectangular survey
✔✔Appraisal Principle - ✔✔balance, contribution, change is constant, anticipation
(future worth of benefits)
✔✔anticipation - ✔✔future worth of benefits
✔✔why do people buy? - ✔✔future worth, income, and ammenities
✔✔substitution principle - ✔✔value of our property determined by the cost of an equally
desirable substitute
✔✔5 criteria for market value - ✔✔typically motivated buyer and seller, well
informed/well advised buyer and seller, Reasonable market time, Payment in cash,
normal consideration (not affected by special terms)
✔✔cost approach - ✔✔the cost if vacant (land), cost to build then, comparables on land,
the cost to build today, and depreciation
✔✔income approach - ✔✔processes the income stream using a capitalization rate
✔✔sales comparison approach - ✔✔sales of property comparable
QUESTIONS SET A+
✔✔eminent domain - ✔✔the right of government to take private property for public use
upon the payment of just compensation
✔✔real estate valuation - ✔✔the process of estimating market value, insurable value,
investment value, or some other properly defined value of an identified interest or
interest in a specific parcel of parcels of real estate as of a given date.
✔✔T/F: Appraisers determine the value of real estate. - ✔✔False. Appraisers provide
an opinion on the value of real estate.
✔✔3 Reasons an appraisal might be done - ✔✔loan evaluation, conservation
easement, and property value
✔✔3 examples of "bundles of rights" if you have a fee simple ownership of real property
- ✔✔right to use, right to demolish, and right to sell
✔✔4 agents of economic production and what do they earn - ✔✔Management-profit,
Land-Rent, Labor-wages, Capital-interest
✔✔Appurtenance - ✔✔the rights that transfer along with the property
✔✔Criteria of highest and best use - ✔✔physically possible, legal permissibility,
financial feasibility, maximum productivity
✔✔Calculate highest and best use - ✔✔land as vacant and property as improved
✔✔4 forces that effect property - ✔✔social, economic, government, and environmental
✔✔specific data of determining property value - ✔✔legal description, physical info,
zoning, and sales and income estimates
, ✔✔how many sections in a township - ✔✔36
✔✔dimension of township in miles - ✔✔6x6 miles
✔✔numbering of township - ✔✔6 5 4 3 2 1
7 8 9 10 11 12
18 17 16 15 14 13
19 20 21 22 23 24
30 29 28 27 26 25
31 32 33 34 35 36
✔✔how many acres in a section? - ✔✔640 acres
✔✔dimension of section in miles - ✔✔1x1 mile
✔✔dimension of section in ft - ✔✔5280x5280 ft
✔✔how many sqft in an acre? - ✔✔43,560
✔✔3 ways to identify a property - ✔✔address, APN, and legal description
✔✔3 types of legal description - ✔✔metes and bound, tract map, rectangular survey
✔✔Appraisal Principle - ✔✔balance, contribution, change is constant, anticipation
(future worth of benefits)
✔✔anticipation - ✔✔future worth of benefits
✔✔why do people buy? - ✔✔future worth, income, and ammenities
✔✔substitution principle - ✔✔value of our property determined by the cost of an equally
desirable substitute
✔✔5 criteria for market value - ✔✔typically motivated buyer and seller, well
informed/well advised buyer and seller, Reasonable market time, Payment in cash,
normal consideration (not affected by special terms)
✔✔cost approach - ✔✔the cost if vacant (land), cost to build then, comparables on land,
the cost to build today, and depreciation
✔✔income approach - ✔✔processes the income stream using a capitalization rate
✔✔sales comparison approach - ✔✔sales of property comparable
