RESIDENTIAL SALES COMPARISON AND
INCOME APPROACHES FINAL PAPER 2026
QUESTIONS WITH VERIFIED SOLUTIONS
◍ When choosing comps the appraiser looks at . Answer: Location,
amenities, market conditions, sales or financing concessions,
motivations of seller and buyers, property rights
◍ How many comps are typically used in the sales comp approach .
Answer: No less than three
◍ Principle of substitution . Answer: Primary principle of cost and sales
comp approaches. When several similar or commensurate commodities,
goods, or services are available, the one with the lowest price will attract
the greatest demand and widest distribution.
◍ The principle of substitution assumes . Answer: There will be no long
delay in acquiring a substitute and that a buyer will accept a substitute
◍ The principle of contribution . Answer: The concept that the value of
a particular component is measured in terms of its contribution to the
value of the whole property, or as the amount that its absence would
detract from the value of the whole.
,◍ The principle of contribution is used when determining . Answer:
How much to adjust for differences between various components of the
property
◍ The principle of change . Answer: The result of the cause and effect
relationship among the forces that influence real property value.
◍ Real property values are . Answer: Dynamic and subject to constant
and immediate change due to external market factors
◍ External market factors . Answer: Social, economic, governmental,
environmental
◍ Principle of anticipation . Answer: The perception that value is
created by the expectation of benefits to be derived in the future
◍ The perception that value is created by the expectation of benefits to
be derived in the future . Answer: Anticipation
◍ The result of the cause and effect relationship among the forces that
influence real property value . Answer: Change
, ◍ The sales comp approach relies heavily on the principle of . Answer:
Substitution
◍ The concept that the value of an inferior property is enhanced by its
association with better properties of the same type . Answer: Progression
◍ Real property value is created and sustained when contrasting,
opposing, or interacting elements are in a state of equilibrium . Answer:
Balance
◍ Off-site conditions that affect a properties value . Answer:
Externalities
◍ Principle of supply and demand . Answer: The price of real property
varies directly, but not necessarily proportionately, with demand, and
inversely, but not necessarily proportionately with supply
◍ Principle of competition . Answer: The level of productivity and
amenities or benefits characteristic of each property considering the
advantageous/disadvantageous position of the property relative to
competitors
◍ Principle of conformity . Answer: Real property value is created and
sustained when the characteristics of a property conform to the demands
of its market
INCOME APPROACHES FINAL PAPER 2026
QUESTIONS WITH VERIFIED SOLUTIONS
◍ When choosing comps the appraiser looks at . Answer: Location,
amenities, market conditions, sales or financing concessions,
motivations of seller and buyers, property rights
◍ How many comps are typically used in the sales comp approach .
Answer: No less than three
◍ Principle of substitution . Answer: Primary principle of cost and sales
comp approaches. When several similar or commensurate commodities,
goods, or services are available, the one with the lowest price will attract
the greatest demand and widest distribution.
◍ The principle of substitution assumes . Answer: There will be no long
delay in acquiring a substitute and that a buyer will accept a substitute
◍ The principle of contribution . Answer: The concept that the value of
a particular component is measured in terms of its contribution to the
value of the whole property, or as the amount that its absence would
detract from the value of the whole.
,◍ The principle of contribution is used when determining . Answer:
How much to adjust for differences between various components of the
property
◍ The principle of change . Answer: The result of the cause and effect
relationship among the forces that influence real property value.
◍ Real property values are . Answer: Dynamic and subject to constant
and immediate change due to external market factors
◍ External market factors . Answer: Social, economic, governmental,
environmental
◍ Principle of anticipation . Answer: The perception that value is
created by the expectation of benefits to be derived in the future
◍ The perception that value is created by the expectation of benefits to
be derived in the future . Answer: Anticipation
◍ The result of the cause and effect relationship among the forces that
influence real property value . Answer: Change
, ◍ The sales comp approach relies heavily on the principle of . Answer:
Substitution
◍ The concept that the value of an inferior property is enhanced by its
association with better properties of the same type . Answer: Progression
◍ Real property value is created and sustained when contrasting,
opposing, or interacting elements are in a state of equilibrium . Answer:
Balance
◍ Off-site conditions that affect a properties value . Answer:
Externalities
◍ Principle of supply and demand . Answer: The price of real property
varies directly, but not necessarily proportionately, with demand, and
inversely, but not necessarily proportionately with supply
◍ Principle of competition . Answer: The level of productivity and
amenities or benefits characteristic of each property considering the
advantageous/disadvantageous position of the property relative to
competitors
◍ Principle of conformity . Answer: Real property value is created and
sustained when the characteristics of a property conform to the demands
of its market
