Appraisal General Exams Questions/Answers Graded
A+ 2025/2026
Attributes of Land - unique in location and composition, physical immobile, durable,
finite, and useful
Four Powers of Government - 1. Police Power
2. Eminent Domain
3. Taxation
4. Escheat
(PETE)
Police Power - zoning, health codes, building codes, traffic, environmental regulations,
air
Eminent Domain - the RIGHT of government to take private property for public use
Condemnation - The PROCESS of exercising eminent domain through court action.
Concepts of Land - geographic and environmental, legal, economic, social
Forces that Influence Real Estate - Social, Economic, Governmental, Environmental
(SEGE)/
Agents of Production - Land, Labor, Capital, Entrepreneurial Coordination (LLCEC)
Factors of Value - utility, scarcity, desire, effective purchasing power (USDE)
Valuation Process - 1.Definition of Problem
2. Scope of Work
3. Data Collection and Property Description
4. Data Analysis (HBU and Market Analysis)
5. Land Value Estimate
6. Three Approaches to Value
7. Reconciliation
8. Report
Going Concern Value - The value of an established business including the value of real
property and goodwill generated through business operations. Includes Real, Personal,
and Intangibles.
Investment Value - The value of the property to a particular investor, based on his or her
specific requirements, discount rate, expectations, and so on.
Substitution - when several similar or commensurate things are available the lowest
price will attract the greatest demand and widest distribution.
,Individual Ownership - sole proprietorship
General Partnership - partnership in which partners share equally in both responsibility
and liability
Limited Partnership (LP) - A partnership consisting of one or more general partners and
one or more limited partners. General partner is liable and limited partners are to the
extent of their initial investment
Tenant in Common - A form of ownership where two or more people hold title on the
same property. Each person's interest is held in severalty and each person retains the
right to will away their interest.
Joint Tenancy - The joint ownership of property by two or more co-owners in which each
co-owner owns an undivided portion of the property. On the death of one of the joint
tenants, his or her interest automatically passes to the surviving joint tenants.
Corporation -
Condominium Ownership - A form of ownership for units in a multiple-family complex.
Each person owns his or her own unit and shares ownership of common areas such as
hallways and grounds.
Tenancy by the Entirety - The joint ownership, recognized in some states, of property
acquired by husband and wife during marriage. Upon the death of one spouse, the
survivor becomes the owner of the property.
Book Value - the capital amount at which the property is shown on the account books of
the corporation.
Cooperative Ownership - Investor resident acquires stock in the corporation owning the
facility and receives a permanent lease on one unit of the facility
Timesharing - Property occupancy arrangement in which multiple individuals have use
of property but, unlike traditional forms of co-ownership, the interests are at different
time intervals rather than simultaneous. A timesharing arrangement may involve true
co-ownership, leasehold interests (fee timesharing), or simply permission to occupy
(i.e., license).
Escheat - The state takes property upon an owners death if there is no will & no heirs
exist. If their is no will it automatically goes to heirs, but if there is also no heirs then it
goes to the state.
Party Wall - A wall that is located on or at a boundary line between two adjoining
parcels of land and is used or is intended to be used by the owners of both properties.
, Taxation - The right of government to raise revenue through assessments on valuable
goods, products, and rights
Examples of Governmental Forces - public services, zoning, building codes, health
codes,
Examples of Legal Forces - easements, use restrictions, access regulations, recording
and conveyance of titles
Examples of Economic Forces - employment, wage levels, economic base, mortgage
credits, occupancy rates, construction costs, rental prices.
Real Estate - the physical land and anything fixed to it
Real Property - The RIGHTS of ownership (you can not see real property).
Personal Property - moveable and tangible property
Fixture - was once personal but is now part of the real estate.
Trade Fixtures - Fixtures and equipment that may be attached to a building during a
tenant's occupancy, with the intention that they be removed when the tenant leaves
Site - Improved Land
as supply increases - price decreases and quantity increases
Value is created by - the ANTICIPATION of benefits to be derived
Substitution is the primary principle for which approach(s)? - Cost and Sales Approach
Use Value - the value of a property as it is currently used or designed. Does not take
HBU into consideration
Examples of Special Use Properties - schools, churches, museums
Utility - ability of a good or service to satisfy a human want, need or desire
Desire - a purchaser's wish for an item
Purchase Power - the ability of an individual or a group to participate in a market
Examples of Environmental Factors - climate, topography, toxic contaminants, natural
barriers, primary transportation systems, nature as desirability
A+ 2025/2026
Attributes of Land - unique in location and composition, physical immobile, durable,
finite, and useful
Four Powers of Government - 1. Police Power
2. Eminent Domain
3. Taxation
4. Escheat
(PETE)
Police Power - zoning, health codes, building codes, traffic, environmental regulations,
air
Eminent Domain - the RIGHT of government to take private property for public use
Condemnation - The PROCESS of exercising eminent domain through court action.
Concepts of Land - geographic and environmental, legal, economic, social
Forces that Influence Real Estate - Social, Economic, Governmental, Environmental
(SEGE)/
Agents of Production - Land, Labor, Capital, Entrepreneurial Coordination (LLCEC)
Factors of Value - utility, scarcity, desire, effective purchasing power (USDE)
Valuation Process - 1.Definition of Problem
2. Scope of Work
3. Data Collection and Property Description
4. Data Analysis (HBU and Market Analysis)
5. Land Value Estimate
6. Three Approaches to Value
7. Reconciliation
8. Report
Going Concern Value - The value of an established business including the value of real
property and goodwill generated through business operations. Includes Real, Personal,
and Intangibles.
Investment Value - The value of the property to a particular investor, based on his or her
specific requirements, discount rate, expectations, and so on.
Substitution - when several similar or commensurate things are available the lowest
price will attract the greatest demand and widest distribution.
,Individual Ownership - sole proprietorship
General Partnership - partnership in which partners share equally in both responsibility
and liability
Limited Partnership (LP) - A partnership consisting of one or more general partners and
one or more limited partners. General partner is liable and limited partners are to the
extent of their initial investment
Tenant in Common - A form of ownership where two or more people hold title on the
same property. Each person's interest is held in severalty and each person retains the
right to will away their interest.
Joint Tenancy - The joint ownership of property by two or more co-owners in which each
co-owner owns an undivided portion of the property. On the death of one of the joint
tenants, his or her interest automatically passes to the surviving joint tenants.
Corporation -
Condominium Ownership - A form of ownership for units in a multiple-family complex.
Each person owns his or her own unit and shares ownership of common areas such as
hallways and grounds.
Tenancy by the Entirety - The joint ownership, recognized in some states, of property
acquired by husband and wife during marriage. Upon the death of one spouse, the
survivor becomes the owner of the property.
Book Value - the capital amount at which the property is shown on the account books of
the corporation.
Cooperative Ownership - Investor resident acquires stock in the corporation owning the
facility and receives a permanent lease on one unit of the facility
Timesharing - Property occupancy arrangement in which multiple individuals have use
of property but, unlike traditional forms of co-ownership, the interests are at different
time intervals rather than simultaneous. A timesharing arrangement may involve true
co-ownership, leasehold interests (fee timesharing), or simply permission to occupy
(i.e., license).
Escheat - The state takes property upon an owners death if there is no will & no heirs
exist. If their is no will it automatically goes to heirs, but if there is also no heirs then it
goes to the state.
Party Wall - A wall that is located on or at a boundary line between two adjoining
parcels of land and is used or is intended to be used by the owners of both properties.
, Taxation - The right of government to raise revenue through assessments on valuable
goods, products, and rights
Examples of Governmental Forces - public services, zoning, building codes, health
codes,
Examples of Legal Forces - easements, use restrictions, access regulations, recording
and conveyance of titles
Examples of Economic Forces - employment, wage levels, economic base, mortgage
credits, occupancy rates, construction costs, rental prices.
Real Estate - the physical land and anything fixed to it
Real Property - The RIGHTS of ownership (you can not see real property).
Personal Property - moveable and tangible property
Fixture - was once personal but is now part of the real estate.
Trade Fixtures - Fixtures and equipment that may be attached to a building during a
tenant's occupancy, with the intention that they be removed when the tenant leaves
Site - Improved Land
as supply increases - price decreases and quantity increases
Value is created by - the ANTICIPATION of benefits to be derived
Substitution is the primary principle for which approach(s)? - Cost and Sales Approach
Use Value - the value of a property as it is currently used or designed. Does not take
HBU into consideration
Examples of Special Use Properties - schools, churches, museums
Utility - ability of a good or service to satisfy a human want, need or desire
Desire - a purchaser's wish for an item
Purchase Power - the ability of an individual or a group to participate in a market
Examples of Environmental Factors - climate, topography, toxic contaminants, natural
barriers, primary transportation systems, nature as desirability
