PRINCIPLES OF REAL ESTATE 2 EXAMINATION
TEST 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
● assessed value - the amount that your local government determines
your property to be worth for tax purposes
● subject property - The property that is being appraised.
● ad valorem - according to value
● Principle of Conformity - Maximum value is found when there is a
reasonable degree of similarity or homogeneity
● USPAP (Uniform Standards of Professional Appraisal Practice) -
Standards that have been established by the Appraisal Standards Board
of the Appraisal Foundation.
● appraisal - An appraiser's opinion of value.
● URAR (Uniform Residential Appraisal Report) - Fannie Mae Form
1004/Freddie Mac 70
, ● Principle of Progression - The value of a subject property is increased
by the value of surrounding properties
● Market Value - The most probable price a property should bring in a
competitive and open market under all conditions requisite to a fair sale.
● value - Does not always equal price.
● Scarcity - if a type of property in a market area is too abundant, it has
reduced value.
● Highest and Best Use - The legal use of property giving the greatest
return in money or amenities
● Principal of Substitution - the value of a commodity is influenced by
the cost of acquiring a substitute or comparable item.
● Field Review - Many lenders, especially when dealing with high-LTV
loans, will order this type of appraisal
● Principle of Anticipation - States that the purchase price is affected by
the expectation of future appeal and benefits
TEST 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
● assessed value - the amount that your local government determines
your property to be worth for tax purposes
● subject property - The property that is being appraised.
● ad valorem - according to value
● Principle of Conformity - Maximum value is found when there is a
reasonable degree of similarity or homogeneity
● USPAP (Uniform Standards of Professional Appraisal Practice) -
Standards that have been established by the Appraisal Standards Board
of the Appraisal Foundation.
● appraisal - An appraiser's opinion of value.
● URAR (Uniform Residential Appraisal Report) - Fannie Mae Form
1004/Freddie Mac 70
, ● Principle of Progression - The value of a subject property is increased
by the value of surrounding properties
● Market Value - The most probable price a property should bring in a
competitive and open market under all conditions requisite to a fair sale.
● value - Does not always equal price.
● Scarcity - if a type of property in a market area is too abundant, it has
reduced value.
● Highest and Best Use - The legal use of property giving the greatest
return in money or amenities
● Principal of Substitution - the value of a commodity is influenced by
the cost of acquiring a substitute or comparable item.
● Field Review - Many lenders, especially when dealing with high-LTV
loans, will order this type of appraisal
● Principle of Anticipation - States that the purchase price is affected by
the expectation of future appeal and benefits
