RESIDENTIAL SALES COMPARISON AND
INCOME APPROACHES EXAMINATION TEST
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◍ What's the value today of the right to receive a lump sum of $85,000
in 10 years, discounted at 8%? Answer:$39,371.45
◍ What is the annual sinking fund factor amount if you planned to
replace the roof of your investment property (at a cost of $4,500) in 15
years and you expected the funds to grow at the rate of 9% per year?
Answer:$140.61
◍ A parcel of vacant land sold for $300,000 and then one year later sold
for $325,000. What was the percentage of appreciation indicated by this
sale and re-sale? Answer:8.3%
◍ __________analysis is based on numbers, and results in either dollar
or percentage amounts. Answer:Quantitative
◍ "The actual or anticipated net income that remains after all operating
expenses are deducted from effective gross income but before mortgage
, debt service and book depreciation are deducted" is the definition of
Answer:Net operating income
◍ The ________________ Approach is the most commonly used
approach for appraising residential property. Answer:Sales Comparison
◍ Your research of a comparable sale reveals that the purchase price was
$160,000, but the purchaser realized the property needed extensive
repairs to the mechanical systems. The estimated cost to cure the
problems was $25,000 but the actual costs turned out to be $18,000.
What should you do? Answer:Adjust the sale price of the property
$25,000
◍ "The appraisal principle that real property value is created and
sustained when the characteristics of a property conform to the demands
of its market" is the definition of the principle of Answer:Conformity
◍ Management expenses might include any of the following EXCEPT
Answer:Repairs and maintenance
◍ You can afford payments of $900/mo and have a $20,000 down
payment. The bank will give a mortgage for 30 years, at 6.5% with
monthly payments. How expensive a house can you buy?
Answer:$162,390
INCOME APPROACHES EXAMINATION TEST
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◍ What's the value today of the right to receive a lump sum of $85,000
in 10 years, discounted at 8%? Answer:$39,371.45
◍ What is the annual sinking fund factor amount if you planned to
replace the roof of your investment property (at a cost of $4,500) in 15
years and you expected the funds to grow at the rate of 9% per year?
Answer:$140.61
◍ A parcel of vacant land sold for $300,000 and then one year later sold
for $325,000. What was the percentage of appreciation indicated by this
sale and re-sale? Answer:8.3%
◍ __________analysis is based on numbers, and results in either dollar
or percentage amounts. Answer:Quantitative
◍ "The actual or anticipated net income that remains after all operating
expenses are deducted from effective gross income but before mortgage
, debt service and book depreciation are deducted" is the definition of
Answer:Net operating income
◍ The ________________ Approach is the most commonly used
approach for appraising residential property. Answer:Sales Comparison
◍ Your research of a comparable sale reveals that the purchase price was
$160,000, but the purchaser realized the property needed extensive
repairs to the mechanical systems. The estimated cost to cure the
problems was $25,000 but the actual costs turned out to be $18,000.
What should you do? Answer:Adjust the sale price of the property
$25,000
◍ "The appraisal principle that real property value is created and
sustained when the characteristics of a property conform to the demands
of its market" is the definition of the principle of Answer:Conformity
◍ Management expenses might include any of the following EXCEPT
Answer:Repairs and maintenance
◍ You can afford payments of $900/mo and have a $20,000 down
payment. The bank will give a mortgage for 30 years, at 6.5% with
monthly payments. How expensive a house can you buy?
Answer:$162,390
