BASIC APPRAISAL PRINCIPLES- CH
5 EXAM QUESTIONS AND
ANSWERS 100% PASS
anticipation - ✔✔an economic theroy that says value is created by the expectation of
future benifits.
arm's length transaction - ✔✔a transaction that occurred unser typical conditions in the
marketplace, where each of the parties is acting in its own besti nterest.
assemblage - ✔✔combining teo or more parcels of land into one larger parcel.
assessed value - ✔✔the amount of value that is used to calculate taxes due, usually
representing a percentage of the market value.
balance - ✔✔1.a supply-and -demand condition that exsist in the real estate market
when there are slightly more properties avalible than buyers. 2. the right mix of Capital,
Enterpreneurship/management, Labor, and Land that result in the best return on
investment from the land (remember; CELL) this determines the land's maxium
productivity.
change - ✔✔a principle affecting value that says all factors influencing real estate-
Physical, Economic, Goverment, and Social (PEGS)-are constantly changing and thus
property value itself is subject to constant change.
100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 1
5 EXAM QUESTIONS AND
ANSWERS 100% PASS
anticipation - ✔✔an economic theroy that says value is created by the expectation of
future benifits.
arm's length transaction - ✔✔a transaction that occurred unser typical conditions in the
marketplace, where each of the parties is acting in its own besti nterest.
assemblage - ✔✔combining teo or more parcels of land into one larger parcel.
assessed value - ✔✔the amount of value that is used to calculate taxes due, usually
representing a percentage of the market value.
balance - ✔✔1.a supply-and -demand condition that exsist in the real estate market
when there are slightly more properties avalible than buyers. 2. the right mix of Capital,
Enterpreneurship/management, Labor, and Land that result in the best return on
investment from the land (remember; CELL) this determines the land's maxium
productivity.
change - ✔✔a principle affecting value that says all factors influencing real estate-
Physical, Economic, Goverment, and Social (PEGS)-are constantly changing and thus
property value itself is subject to constant change.
100% Pass Guarantee Emily Charlene All Rights Reserved © 2025 1
