NSAR Salesperson Licensing Course Questions with
Correct Answers
Subjective Value Correct Answer-the perception of value in the minds
of the buyer and seller
Objective Value Correct Answer-related to the direct cost of creating
(e.g. acquiring a lot and building a home)
Types of value found in the Canadian Economy Correct Answer--
insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
Three approaches that appraisers use to establish an estimate of value
Correct Answer--cost approach (actual cost)
-income approach (subjective value)
-direct comparison approach (subjective value)
market price Correct Answer-the price for an individual property
,market value (aka value in exchange) Correct Answer-an estimate of
value arising from many sales (market prices)
Definition of Market Value Correct Answer-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!
Correct Answer-Instagram: @laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
The 4 assumptions of market value Correct Answer-1) reasonable time
2) no undue pressure
3) prudent behaviour
4) informed buyer and seller
15 Principles of Value Correct Answer-- 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 Correct Answer-Buyers buy the present worth
of future benefits (e.g. thinking about resale value)
Principle of Balance Correct Answer-Maximum value is maintained
through balance (e.g. huge house with only one car garage is not
balanced)
Principle of Change Correct Answer-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 Correct Answer-Excess profit breeds ruinous
competition (two people see same opportunity and both jump in; neither
will achieve their anticipated profits)
Principle of Conformity Correct Answer-Reasonable conformance with
existing standards protects value (houses that conform with one another
hold their value)
Principle of Consistent Use Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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)
Correct Answers
Subjective Value Correct Answer-the perception of value in the minds
of the buyer and seller
Objective Value Correct Answer-related to the direct cost of creating
(e.g. acquiring a lot and building a home)
Types of value found in the Canadian Economy Correct Answer--
insurable; book
-appraised
-salvage
-assessed
-liquidation
-loan
-sentimental
Three approaches that appraisers use to establish an estimate of value
Correct Answer--cost approach (actual cost)
-income approach (subjective value)
-direct comparison approach (subjective value)
market price Correct Answer-the price for an individual property
,market value (aka value in exchange) Correct Answer-an estimate of
value arising from many sales (market prices)
Definition of Market Value Correct Answer-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!
Correct Answer-Instagram: @laurahalifaxrealtor
Facebook: Laura Sumarah
Text: 902 210 9876
The 4 assumptions of market value Correct Answer-1) reasonable time
2) no undue pressure
3) prudent behaviour
4) informed buyer and seller
15 Principles of Value Correct Answer-- 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 Correct Answer-Buyers buy the present worth
of future benefits (e.g. thinking about resale value)
Principle of Balance Correct Answer-Maximum value is maintained
through balance (e.g. huge house with only one car garage is not
balanced)
Principle of Change Correct Answer-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 Correct Answer-Excess profit breeds ruinous
competition (two people see same opportunity and both jump in; neither
will achieve their anticipated profits)
Principle of Conformity Correct Answer-Reasonable conformance with
existing standards protects value (houses that conform with one another
hold their value)
Principle of Consistent Use Correct Answer-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 Correct Answer-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 Correct Answer-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 Correct Answer-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)
