Residential Market Analysis and Highest
and Best Use Course Questions with
Correct Answers 100% Pass
When an appraiser is analyzing the subject property's market area, which question is
MOST likely to be asked?
A. Why is the subject property being sold?
B. What defines the boundaries of the subject property's neighborhood?
C. Who owns the subject property?
D. What is the subject property's condition? - ✔✔B. What defines the boundaries of the
subject property's neighborhood?
"A place where goods and services are exchanged" is the definition of a:
A. retail district
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,B. market
C. neighborhood
D. store - ✔✔B. market
True or False: The appraisal profession has its own fundamental terminology, just like
the medical and legal professions. - ✔✔True
When an appraiser is analyzing the subject property's market area, which question is
LEAST likely to be asked?
A. Where is the property located?
B. What defines the boundaries of the property's neighborhood?
C. Who owns the property?
D. What are the trends for this neighborhood? - ✔✔C. Who owns the property?
A study of the market as a whole, as well as the investigation of conditions of a
component of that market, for a particular type of property, is the definition of:
A. market value
B. neighborhood
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,C. market analysis
D. appraisal - ✔✔C. market analysis
The value of a fair quality home will be enhanced if it is located in a neighborhood of all
good quality homes. What economic principle does this demonstrate?
A. Substitution
B. Progression
C. Anticipation
D. Regression - ✔✔B. Progression
If there are not enough homes available in a market to satisfy demand, what will
happen to home prices?
A. they will increase
B. they will decrease
C. they will stay the same - ✔✔A. they will increase
Which of these is an example of the principle of progression?
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, A. Average quality home in average quality neighborhood
B. A manufacturing facility located in a residential neighborhood
C. A good quality home in a neighborhood of average quality homes
D. Fair quality home in a neighborhood of good quality homes - ✔✔D. Fair quality
home in a neighborhood of good quality homes
Which stage of the life cycle does not happen in every neighborhood or property?
A. Decline
B. Renewal
C. Growth
D. Stability - ✔✔B. Renewal
What is another name for the principle of inclining and declining periods?
A. ups and downs
B. Externalities
C. Anticipation
D. Integration and Disintegration - ✔✔D. Integration and Disintegration
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and Best Use Course Questions with
Correct Answers 100% Pass
When an appraiser is analyzing the subject property's market area, which question is
MOST likely to be asked?
A. Why is the subject property being sold?
B. What defines the boundaries of the subject property's neighborhood?
C. Who owns the subject property?
D. What is the subject property's condition? - ✔✔B. What defines the boundaries of the
subject property's neighborhood?
"A place where goods and services are exchanged" is the definition of a:
A. retail district
100% Pass Guarantee Emilly Charlotte, All Rights Reserved © 2025 1
,B. market
C. neighborhood
D. store - ✔✔B. market
True or False: The appraisal profession has its own fundamental terminology, just like
the medical and legal professions. - ✔✔True
When an appraiser is analyzing the subject property's market area, which question is
LEAST likely to be asked?
A. Where is the property located?
B. What defines the boundaries of the property's neighborhood?
C. Who owns the property?
D. What are the trends for this neighborhood? - ✔✔C. Who owns the property?
A study of the market as a whole, as well as the investigation of conditions of a
component of that market, for a particular type of property, is the definition of:
A. market value
B. neighborhood
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,C. market analysis
D. appraisal - ✔✔C. market analysis
The value of a fair quality home will be enhanced if it is located in a neighborhood of all
good quality homes. What economic principle does this demonstrate?
A. Substitution
B. Progression
C. Anticipation
D. Regression - ✔✔B. Progression
If there are not enough homes available in a market to satisfy demand, what will
happen to home prices?
A. they will increase
B. they will decrease
C. they will stay the same - ✔✔A. they will increase
Which of these is an example of the principle of progression?
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, A. Average quality home in average quality neighborhood
B. A manufacturing facility located in a residential neighborhood
C. A good quality home in a neighborhood of average quality homes
D. Fair quality home in a neighborhood of good quality homes - ✔✔D. Fair quality
home in a neighborhood of good quality homes
Which stage of the life cycle does not happen in every neighborhood or property?
A. Decline
B. Renewal
C. Growth
D. Stability - ✔✔B. Renewal
What is another name for the principle of inclining and declining periods?
A. ups and downs
B. Externalities
C. Anticipation
D. Integration and Disintegration - ✔✔D. Integration and Disintegration
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