Appraisal Study Guide Exam Questions/Answers Graded A+
2025/2026
When it is: newly constructed, a change of ownership, and if there is a decline in value -
When should property be reappraised?
An estimate of value - An appraisal is?
Externalities (for airport question) - Which of the following principles best describes the
effect of an international airport on the value of a nearby residential subdivision?
Open market - What term is used for a transaction in which all parties to the transaction
are dealing from equal bargaining positions?
the value will increase - If demand of homes remains constant and the supply
decreases, then..?
the power of a commodity to demand other commodities in exchange, part of the criteria
for Market Value, and can be expressed in terms of other commodities - Value in
exchange
commonly bought and sold in the open market - When appraising property the appraiser
must appraise the appraisal unit that is...?
legally permitted, physically possible, and reasonably probable - A prospective use that
represents the "highest and best use" of the land must be..?
Identify and evaluate factors that may influence property values - The primary reason an
appraiser analyzes a neighborhood is to..?
An economic principle that says potential buyers of property consider prices paid for
similar properties - Substitution
Taxes are NOT an agent of production (land, capital, entrepreneurship ARE) - Agents of
production do not include..?
Principle of substitution - The presumption that the market value of a property will
conform to the sales price of close substitutes is based upon the..?
Appraise the new building, do NOT reappraise the land - If someone has owned land for
a couple years, and then recently built a home, how should the assessor treat the
property?
Progression - A home that costs $150,000 is surrounded by homes priced substantially
higher. What principle is most applicable to the $150,000 home in a current appraisal?
, CA Constitution says: All property is taxable unless otherwise provided - California
Constitution provides that:
a different value - Land values of parcels which are the same size and side by side may
have..?
Taxable possessory interest - A person building a cabin on land they leased from the
US Forest Service is an example of?
Comparative sales approach, cost approach, and income approach - The principle of
substitution can be applied to what approaches?
scarcity, demand, utility, and capacity for private ownership - The four elements that
create value are?
zoning is a right of government police power - Police power example:
the right to occupy, exclude others, or to sell; the right to borrow against; the right to
convey by inheritance - The "bundle of rights" includes:
Joint tenancy - What type of ownership has definite rights of survivorship?
appraisers should appraise at market value - When making an appraisal for property tax
purposes the appraiser is to appraise the property at:
a study of supply and demand conditions in a specific area - Market analysis is:
religious worship properties are exempt from property taxes only when an exemption is
filed - Properties used exclusively for religious worship are..?
Substitution!! (incorrect answers would be: balance, appraisal, and competition) -
Values of a property tend to be set by the cost of acquiring an equally desirable property
which follows the principle of..?
NOT a control that arises from the government's police power (subdivision
requirements, building and safety regulations, and zoning regulations ARE) - Deed
restrictions are..?
Substitution!! (person would likely buy a *similar* home that they may like less, but since
it is cheaper they would reason it is the better choice) - If a person finds a home they
like a lot, but then decide not to buy it after learning the price, their reasoning is based
on..?
Dominant estate - Owner A gives owner B an easement across A's land to shorten the
distance B has to travel to reach land he owns. This land B owns has benefited by this
easement and is known as the..?
2025/2026
When it is: newly constructed, a change of ownership, and if there is a decline in value -
When should property be reappraised?
An estimate of value - An appraisal is?
Externalities (for airport question) - Which of the following principles best describes the
effect of an international airport on the value of a nearby residential subdivision?
Open market - What term is used for a transaction in which all parties to the transaction
are dealing from equal bargaining positions?
the value will increase - If demand of homes remains constant and the supply
decreases, then..?
the power of a commodity to demand other commodities in exchange, part of the criteria
for Market Value, and can be expressed in terms of other commodities - Value in
exchange
commonly bought and sold in the open market - When appraising property the appraiser
must appraise the appraisal unit that is...?
legally permitted, physically possible, and reasonably probable - A prospective use that
represents the "highest and best use" of the land must be..?
Identify and evaluate factors that may influence property values - The primary reason an
appraiser analyzes a neighborhood is to..?
An economic principle that says potential buyers of property consider prices paid for
similar properties - Substitution
Taxes are NOT an agent of production (land, capital, entrepreneurship ARE) - Agents of
production do not include..?
Principle of substitution - The presumption that the market value of a property will
conform to the sales price of close substitutes is based upon the..?
Appraise the new building, do NOT reappraise the land - If someone has owned land for
a couple years, and then recently built a home, how should the assessor treat the
property?
Progression - A home that costs $150,000 is surrounded by homes priced substantially
higher. What principle is most applicable to the $150,000 home in a current appraisal?
, CA Constitution says: All property is taxable unless otherwise provided - California
Constitution provides that:
a different value - Land values of parcels which are the same size and side by side may
have..?
Taxable possessory interest - A person building a cabin on land they leased from the
US Forest Service is an example of?
Comparative sales approach, cost approach, and income approach - The principle of
substitution can be applied to what approaches?
scarcity, demand, utility, and capacity for private ownership - The four elements that
create value are?
zoning is a right of government police power - Police power example:
the right to occupy, exclude others, or to sell; the right to borrow against; the right to
convey by inheritance - The "bundle of rights" includes:
Joint tenancy - What type of ownership has definite rights of survivorship?
appraisers should appraise at market value - When making an appraisal for property tax
purposes the appraiser is to appraise the property at:
a study of supply and demand conditions in a specific area - Market analysis is:
religious worship properties are exempt from property taxes only when an exemption is
filed - Properties used exclusively for religious worship are..?
Substitution!! (incorrect answers would be: balance, appraisal, and competition) -
Values of a property tend to be set by the cost of acquiring an equally desirable property
which follows the principle of..?
NOT a control that arises from the government's police power (subdivision
requirements, building and safety regulations, and zoning regulations ARE) - Deed
restrictions are..?
Substitution!! (person would likely buy a *similar* home that they may like less, but since
it is cheaper they would reason it is the better choice) - If a person finds a home they
like a lot, but then decide not to buy it after learning the price, their reasoning is based
on..?
Dominant estate - Owner A gives owner B an easement across A's land to shorten the
distance B has to travel to reach land he owns. This land B owns has benefited by this
easement and is known as the..?
