ILLINOIS PROPERTY ASSESSMENT EVALUATION
CERTIFICATION (PAEC) PRACTICE
EXAMINATION NEWEST 2025 – 2026
QUESTIONS FROM ACTUAL EXAMS COMPLETE
100 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+||BRAND NEW!!
1. Which of the following best defines market value in property assessment
practice?
A. The price a property sold for last year
B. The most probable price under normal conditions
C. The assessed value determined by the assessor
D. The replacement cost minus depreciation
Answer: B ✓
Market value refers to the most probable price a property would bring in
a competitive and open market under all conditions requisite to a fair
sale. Key concept: open market conditions.
2. The assessment date in Illinois is generally:
A. January 1
B. April 15
C. July 1
D. December 31
Answer: A ✓
_The statutory assessment date is January 1, establishing the property’s
condition and ownership. Key concept: lien date.
,3. Which approach to value is most applicable for single-family residential
properties?
A. Income approach
B. Sales comparison approach
C. Cost approach only
D. Residual approach
Answer: B ✓
_The sales comparison approach is most relevant due to availability of
comparable sales. Key concept: comparable properties.
4. In the cost approach, depreciation includes:
A. Only physical deterioration
B. Only external obsolescence
C. Physical, functional, and external
D. Market fluctuations only
Answer: C ✓
_Depreciation consists of physical deterioration, functional obsolescence,
and external obsolescence. Key concept: total depreciation.
5. What is the primary purpose of mass appraisal?
A. Appraise one property in detail
B. Determine value for taxation across many properties
C. Estimate rental income
D. Calculate construction cost
Answer: B ✓
_Mass appraisal evaluates multiple properties efficiently for tax purposes.
Key concept: uniformity and equity.
6. Which term describes a decrease in value due to outside influences?
A. Functional obsolescence
B. External obsolescence
C. Physical deterioration
D. Economic gain
Answer: B ✓
, _External obsolescence results from factors outside the property
boundaries. Key concept: negative externalities.
7. The income approach is most appropriate for:
A. Vacant land
B. Owner-occupied homes
C. Rental and commercial properties
D. Government buildings
Answer: C ✓
_Income-producing properties are best valued using income
capitalization. Key concept: net operating income (NOI).
8. Equalization in property assessment ensures:
A. All taxes are equal
B. Uniform property values across jurisdictions
C. Higher assessments
D. Lower tax rates
Answer: B ✓
_Equalization adjusts values to achieve fairness across taxing districts. Key
concept: assessment uniformity.
9. What is a comparable sale?
A. Any property sold
B. A similar property recently sold
C. A property listed for sale
D. A property under construction
Answer: B ✓
_Comparable sales must be similar and recent to reflect market
conditions. Key concept: market similarity.
10.The term highest and best use refers to:
A. Current use only
B. Most profitable legal use
C. Owner’s preference
CERTIFICATION (PAEC) PRACTICE
EXAMINATION NEWEST 2025 – 2026
QUESTIONS FROM ACTUAL EXAMS COMPLETE
100 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+||BRAND NEW!!
1. Which of the following best defines market value in property assessment
practice?
A. The price a property sold for last year
B. The most probable price under normal conditions
C. The assessed value determined by the assessor
D. The replacement cost minus depreciation
Answer: B ✓
Market value refers to the most probable price a property would bring in
a competitive and open market under all conditions requisite to a fair
sale. Key concept: open market conditions.
2. The assessment date in Illinois is generally:
A. January 1
B. April 15
C. July 1
D. December 31
Answer: A ✓
_The statutory assessment date is January 1, establishing the property’s
condition and ownership. Key concept: lien date.
,3. Which approach to value is most applicable for single-family residential
properties?
A. Income approach
B. Sales comparison approach
C. Cost approach only
D. Residual approach
Answer: B ✓
_The sales comparison approach is most relevant due to availability of
comparable sales. Key concept: comparable properties.
4. In the cost approach, depreciation includes:
A. Only physical deterioration
B. Only external obsolescence
C. Physical, functional, and external
D. Market fluctuations only
Answer: C ✓
_Depreciation consists of physical deterioration, functional obsolescence,
and external obsolescence. Key concept: total depreciation.
5. What is the primary purpose of mass appraisal?
A. Appraise one property in detail
B. Determine value for taxation across many properties
C. Estimate rental income
D. Calculate construction cost
Answer: B ✓
_Mass appraisal evaluates multiple properties efficiently for tax purposes.
Key concept: uniformity and equity.
6. Which term describes a decrease in value due to outside influences?
A. Functional obsolescence
B. External obsolescence
C. Physical deterioration
D. Economic gain
Answer: B ✓
, _External obsolescence results from factors outside the property
boundaries. Key concept: negative externalities.
7. The income approach is most appropriate for:
A. Vacant land
B. Owner-occupied homes
C. Rental and commercial properties
D. Government buildings
Answer: C ✓
_Income-producing properties are best valued using income
capitalization. Key concept: net operating income (NOI).
8. Equalization in property assessment ensures:
A. All taxes are equal
B. Uniform property values across jurisdictions
C. Higher assessments
D. Lower tax rates
Answer: B ✓
_Equalization adjusts values to achieve fairness across taxing districts. Key
concept: assessment uniformity.
9. What is a comparable sale?
A. Any property sold
B. A similar property recently sold
C. A property listed for sale
D. A property under construction
Answer: B ✓
_Comparable sales must be similar and recent to reflect market
conditions. Key concept: market similarity.
10.The term highest and best use refers to:
A. Current use only
B. Most profitable legal use
C. Owner’s preference
