Texas SAE: Real Estate Appraisal Exam Review Questions with Complete Solution 2025/2026

Texas SAE: Real Estate Appraisal Exam Review Questions with Complete Solution 2025/2026 Transferability - answer-Which value-influencing DUST factor addresses the ease with which the property can be conveyed to another? 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. - answer-Which of the following formulas is used with the index method to find the reproduction cost? The same neighborhood - answer-When possible, comparable sales from ______ should be used. A parcel of land, the structures on it, and shared common areas - answer-Ownership in a planned unit development consists of ______. Unpaid taxes become a lien against the property. - answer-In what way is taxation an inherent burden on private landownership? 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. - answer-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 ______. The appraiser, the lender, and the consumer - answer-The Appraiser Independence Requirements protect which party or parties?10X (100,000/10,000) - answer-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? Appraiser - answer-Which professional is hired by the buyer and lender to give an opinion of value of the property? The appraiser selects the adjusted sales price of the property most like the subject to use as the indicated value. - answer-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? An estimate of value for a specific purpose, party, and property as of a specific date - answer-What is the definition of an appraisal? Condo Unit - answer-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? Severalty Ownership Corporations own property owned in severalty, like individuals do. - answer-If Mega Corporation owns real property, chances are it owns it in ______. Land Trust A land trust is similar to other trusts except that it's formed specifically to hold real estate. - answerJames 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. This is a definition of land. - answer-The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects, is called ______. Building specifications explain the blueprint and any features that may not be visible on that building plan. - answer-Which of these is a written description of a blueprint?Ground Rent Capitalization Method (GRM) - answer-What method of land valuation converts the amount of yearly income a site will produce into a value using a capitalization rate? Complete the cost approach section of the URAR form - answer-As part of completing an appraisal using the cost approach method, what must appraisers do?