Illinois Appraiser Licensing Examination
Practice Test (Appraisal Qualifications Board
- AQB) Questions and Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A
1. Market value is best defined as:
A. The price a willing buyer pays a willing seller in an open market
B. The price shown on tax assessment
C. The historical cost of a property
D. The replacement cost minus depreciation
Answer: A
Rationale: Market value reflects typical buyer/seller behavior in an open, competitive market.
2. Highest and best use must be:
A. Physically possible
B. Legally permissible
C. Financially feasible
D. All of the above
Answer: D
Rationale: Highest and best use must satisfy all four criteria.
3. Depreciation refers to:
A. Increase in property value
B. Loss in utility or value
C. Only physical deterioration
D. Only economic obsolescence
Answer: B
Rationale: Depreciation includes physical, functional, and external losses.
4. A principle stating maximum value comes from proper use of land and improvements is:
A. Contribution
B. Substitution
C. Conformity
D. Anticipation
Answer: C
,5. The principal of substitution means:
A. Buyers will pay no more than the cost of a similar property
B. Sellers will lower prices
C. Investors seek highest return
D. Value increases over time
Answer: A
6. External obsolescence is:
A. Curable
B. Incurable
C. Always temporary
D. Same as functional obsolescence
Answer: B
7. Functional obsolescence might include:
A. Outdated floor plan
B. Zoning restrictions
C. Market downturn
D. None
Answer: A
8. Anticipation in valuation refers to:
A. Expectation of future benefits
B. Historical costs
C. Tax depreciation
D. Construction delay
Answer: A
9. Contribution means:
A. Value of an improvement depends on how much it adds to market value
B. Tax contribution
C. Investment return
D. Owner equity
Answer: A
, 10. A physical characteristic of land is:
A. Non-homogeneity
B. Mobility
C. Supply elasticity
D. Depreciation potential
Answer: A
Rationale: Land is heterogeneous and unique.
11–20: Terminology & Definitions
11. “Fee simple absolute” is:
A. Most complete ownership interest
B. A leasehold
C. Life estate
D. Easement
Answer: A
12. An easement appurtenant benefits:
A. A parcel of land
B. Only personal property
C. Government
D. Tenants only
Answer: A
13. A lien is:
A. A claim against property for debt
B. A boundary line
C. A deed restriction
D. A zoning ordinance
Answer: A
14. Title insurance protects against:
A. Future value changes
B. Defects in title
C. Depreciation
D. Tax increases
Answer: B
Practice Test (Appraisal Qualifications Board
- AQB) Questions and Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A
1. Market value is best defined as:
A. The price a willing buyer pays a willing seller in an open market
B. The price shown on tax assessment
C. The historical cost of a property
D. The replacement cost minus depreciation
Answer: A
Rationale: Market value reflects typical buyer/seller behavior in an open, competitive market.
2. Highest and best use must be:
A. Physically possible
B. Legally permissible
C. Financially feasible
D. All of the above
Answer: D
Rationale: Highest and best use must satisfy all four criteria.
3. Depreciation refers to:
A. Increase in property value
B. Loss in utility or value
C. Only physical deterioration
D. Only economic obsolescence
Answer: B
Rationale: Depreciation includes physical, functional, and external losses.
4. A principle stating maximum value comes from proper use of land and improvements is:
A. Contribution
B. Substitution
C. Conformity
D. Anticipation
Answer: C
,5. The principal of substitution means:
A. Buyers will pay no more than the cost of a similar property
B. Sellers will lower prices
C. Investors seek highest return
D. Value increases over time
Answer: A
6. External obsolescence is:
A. Curable
B. Incurable
C. Always temporary
D. Same as functional obsolescence
Answer: B
7. Functional obsolescence might include:
A. Outdated floor plan
B. Zoning restrictions
C. Market downturn
D. None
Answer: A
8. Anticipation in valuation refers to:
A. Expectation of future benefits
B. Historical costs
C. Tax depreciation
D. Construction delay
Answer: A
9. Contribution means:
A. Value of an improvement depends on how much it adds to market value
B. Tax contribution
C. Investment return
D. Owner equity
Answer: A
, 10. A physical characteristic of land is:
A. Non-homogeneity
B. Mobility
C. Supply elasticity
D. Depreciation potential
Answer: A
Rationale: Land is heterogeneous and unique.
11–20: Terminology & Definitions
11. “Fee simple absolute” is:
A. Most complete ownership interest
B. A leasehold
C. Life estate
D. Easement
Answer: A
12. An easement appurtenant benefits:
A. A parcel of land
B. Only personal property
C. Government
D. Tenants only
Answer: A
13. A lien is:
A. A claim against property for debt
B. A boundary line
C. A deed restriction
D. A zoning ordinance
Answer: A
14. Title insurance protects against:
A. Future value changes
B. Defects in title
C. Depreciation
D. Tax increases
Answer: B
