Texas SAE
Texas SAE: Real Estate Appraisal
Exam 2025/2026
Which value-influencing DUST factor addresses the ease with which the property can be
conveyed to another? - Transferability
Which of the following formulas is used with the index method to find the reproduction
cost? - Present index ÷ Index at time of construction x Original cost = Present cost
To arrive at the present cost, the appraiser applies a factor that represents the costs of
construction over time up to the appraisal date (present index ÷ index at time of
construction) multiplied by the subject building's original cost.
When possible, comparable sales from ______ should be used. - The same neighborhood
Ownership in a planned unit development consists of ______. - A parcel of land, the
structures on it, and shared common areas
In what way is taxation an inherent burden on private landownership? - Unpaid taxes
become a lien against the property.
Bianca wants to buy a cooperative, but she's unsure that she can afford it. With a
cooperative, her share of mortgage interest and real estate taxes will be ______. -
Deductible on her personal income tax returns
As the resident in a cooperative, her share of mortgage interest and real estate taxes is
deductible on personal income tax returns.
The Appraiser Independence Requirements protect which party or parties? - The
appraiser, the lender, and the consumer
Texas SAE
,Texas SAE
Using the gross income multiplier (GIM) valuation method, a property's sales price is
divided by its gross income. If a property has a sales price of $100,000 and gross income
of $10,000, what is its GIM? - 10X (100,000/10,000)
Which professional is hired by the buyer and lender to give an opinion of value of the
property? - Appraiser
Which of the following best describes how an appraiser reconciles the adjusted sales
prices of the comparable properties to indicate the value of the subject property? - The
appraiser selects the adjusted sales price of the property most like the subject to use as the
indicated value.
What is the definition of an appraisal? - An estimate of value for a specific purpose, party,
and property as of a specific date
Which of the following properties requires the appraiser to include information about the
monthly fees charged by the property management, the location of the subject property
within a community, and the areas considered private or public? - Condo Unit
If Mega Corporation owns real property, chances are it owns it in ______. - Severalty
Ownership
Corporations own property owned in severalty, like individuals do.
James creates a trust to hold a piece of real estate he owns. He directs a corporate
fiduciary to hold title to the real estate and provides instructions for the management,
control, and disposition of the real estate upon his death. Given that the trust only holds
real estate, James likely set up a(n) ______ trust. - Land Trust
A land trust is similar to other trusts except that it's formed specifically to hold real estate.
Texas SAE
,Texas SAE
The earth's surface, extending downward to the center of the earth and upward to infinity,
including permanently-attached natural objects, is called ______. - This is a definition of
land.
Which of these is a written description of a blueprint? - Building specifications
explain the blueprint and any features that may not be visible on that building plan.
What method of land valuation converts the amount of yearly income a site will produce
into a value using a capitalization rate? - Ground Rent Capitalization Method (GRM)
As part of completing an appraisal using the cost approach method, what must appraisers
do? - Complete the cost approach section of the URAR form
Which of the following analyzes net operating income (NOI) for a single year, and is
used when the property's income isn't expected to vary much over time?
The _method converts a single year's expected income (or an annual average) into a
market value. This is the expected return on investment the property is capable of
producing in a single year: the first year of ownership. - Direct Capitalization
Real estate, plus all of the interests, benefits, and rights included in ownership, is also
known as ______. - Real Property
The US Census Bureau is a good source of what type of data needed by appraisers? -
General Data
What's the term for certified energy-efficient homes that have met specific qualifications?
- ENERGY STAR®-qualified home
Texas SAE
, Texas SAE
The ______ system keeps air fresh by recycling air and removing odors and pollutants. -
Ventilation
Which part of the cost approach equation is considered the most difficult part to estimate
accurately?
__is considered the most difficult part of the cost approach equation to estimate
accurately, partially because it can vary considerably based on specific market conditions
as of the appraisal date. In addition, a buyer's measure of depreciation can also vary quite
a bit, depending on the price range of homes in the local area. - Accrued Depreciation
When discounted cash flow analysis is used, what's discounted?
_is discounted to a present value when this method is used. - Anticipated future income
What guidelines must appraisers follow when completing the sales comparison section of
the URAR? - The Uniform Appraisal Dataset (UAD) provides field-specific instructions
for the URAR used by Fannie Mae and Freddie Mac.
What are the three most common forms of legal descriptions? - Metes and bounds, lot
and block, and rectangular government survey
Which of the following is a loss in value caused by wear and tear? - Physical
Deterioration
Every foundation in direct contact with the ground should have which two features? -
vapor barrier and termiticide
A lot with a front footage measuring 450 feet sold for $150,000. What was the cost per
front foot? Round to the nearest dollar. - $333 (150,000/450) (450X333)
Texas SAE
Texas SAE: Real Estate Appraisal
Exam 2025/2026
Which value-influencing DUST factor addresses the ease with which the property can be
conveyed to another? - Transferability
Which of the following formulas is used with the index method to find the reproduction
cost? - Present index ÷ Index at time of construction x Original cost = Present cost
To arrive at the present cost, the appraiser applies a factor that represents the costs of
construction over time up to the appraisal date (present index ÷ index at time of
construction) multiplied by the subject building's original cost.
When possible, comparable sales from ______ should be used. - The same neighborhood
Ownership in a planned unit development consists of ______. - A parcel of land, the
structures on it, and shared common areas
In what way is taxation an inherent burden on private landownership? - Unpaid taxes
become a lien against the property.
Bianca wants to buy a cooperative, but she's unsure that she can afford it. With a
cooperative, her share of mortgage interest and real estate taxes will be ______. -
Deductible on her personal income tax returns
As the resident in a cooperative, her share of mortgage interest and real estate taxes is
deductible on personal income tax returns.
The Appraiser Independence Requirements protect which party or parties? - The
appraiser, the lender, and the consumer
Texas SAE
,Texas SAE
Using the gross income multiplier (GIM) valuation method, a property's sales price is
divided by its gross income. If a property has a sales price of $100,000 and gross income
of $10,000, what is its GIM? - 10X (100,000/10,000)
Which professional is hired by the buyer and lender to give an opinion of value of the
property? - Appraiser
Which of the following best describes how an appraiser reconciles the adjusted sales
prices of the comparable properties to indicate the value of the subject property? - The
appraiser selects the adjusted sales price of the property most like the subject to use as the
indicated value.
What is the definition of an appraisal? - An estimate of value for a specific purpose, party,
and property as of a specific date
Which of the following properties requires the appraiser to include information about the
monthly fees charged by the property management, the location of the subject property
within a community, and the areas considered private or public? - Condo Unit
If Mega Corporation owns real property, chances are it owns it in ______. - Severalty
Ownership
Corporations own property owned in severalty, like individuals do.
James creates a trust to hold a piece of real estate he owns. He directs a corporate
fiduciary to hold title to the real estate and provides instructions for the management,
control, and disposition of the real estate upon his death. Given that the trust only holds
real estate, James likely set up a(n) ______ trust. - Land Trust
A land trust is similar to other trusts except that it's formed specifically to hold real estate.
Texas SAE
,Texas SAE
The earth's surface, extending downward to the center of the earth and upward to infinity,
including permanently-attached natural objects, is called ______. - This is a definition of
land.
Which of these is a written description of a blueprint? - Building specifications
explain the blueprint and any features that may not be visible on that building plan.
What method of land valuation converts the amount of yearly income a site will produce
into a value using a capitalization rate? - Ground Rent Capitalization Method (GRM)
As part of completing an appraisal using the cost approach method, what must appraisers
do? - Complete the cost approach section of the URAR form
Which of the following analyzes net operating income (NOI) for a single year, and is
used when the property's income isn't expected to vary much over time?
The _method converts a single year's expected income (or an annual average) into a
market value. This is the expected return on investment the property is capable of
producing in a single year: the first year of ownership. - Direct Capitalization
Real estate, plus all of the interests, benefits, and rights included in ownership, is also
known as ______. - Real Property
The US Census Bureau is a good source of what type of data needed by appraisers? -
General Data
What's the term for certified energy-efficient homes that have met specific qualifications?
- ENERGY STAR®-qualified home
Texas SAE
, Texas SAE
The ______ system keeps air fresh by recycling air and removing odors and pollutants. -
Ventilation
Which part of the cost approach equation is considered the most difficult part to estimate
accurately?
__is considered the most difficult part of the cost approach equation to estimate
accurately, partially because it can vary considerably based on specific market conditions
as of the appraisal date. In addition, a buyer's measure of depreciation can also vary quite
a bit, depending on the price range of homes in the local area. - Accrued Depreciation
When discounted cash flow analysis is used, what's discounted?
_is discounted to a present value when this method is used. - Anticipated future income
What guidelines must appraisers follow when completing the sales comparison section of
the URAR? - The Uniform Appraisal Dataset (UAD) provides field-specific instructions
for the URAR used by Fannie Mae and Freddie Mac.
What are the three most common forms of legal descriptions? - Metes and bounds, lot
and block, and rectangular government survey
Which of the following is a loss in value caused by wear and tear? - Physical
Deterioration
Every foundation in direct contact with the ground should have which two features? -
vapor barrier and termiticide
A lot with a front footage measuring 450 feet sold for $150,000. What was the cost per
front foot? Round to the nearest dollar. - $333 (150,000/450) (450X333)
Texas SAE
