Basic Appraisal Principles Test Study Questions and Answers 100% pass | graded A+

True or False? When developing an opinion of site value of an improved property, an appraiser needs to consider the highest and best use of the property as though vacant. - TRUE When developing an opinion of highest and best use, what is the final criteria that is applied? - maximally productive A lot owner constructs a new 4,000 square foot home in a neighborhood of mostly 800 to 1,200 square foot homes. The value of the new 4,000 square foot home is diminished by the smaller homes surrounding it. This is an example of which valuation principle? - regression Unfortunately, with real estate, the ______ side of the equation is relatively fixed and slow to change whereas the ______ side of the equation can change quickly. - supply, demand The result of the cause and effect relationship among the forces that influence real property value" is the definition of the principle of - change In the agents of production theory, the return on land would be __________ and the return on labor would be ________. - rent, wages The perception that value is created by the expectation of benefits to be derived in the future" is the definition of the principle of - anticipation