Real Estate Appraisal Basics | Practice Test / Quiz / MCQs

Home > Real Estate Basics > Quizzes > Real Estate Appraisal Basics

Real Estate Appraisal Basics

Fast practice, instant feedback. Timer auto-submits when time’s up.

Avg score: 88% • Most missed: “Conformity”

Study First Challenge a Friend

Real Estate Appraisal Basics

Time left 00:00

25 Questions

1. Substitution

An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building - less depreciation.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The combining of two or more adjoining lots into one larger tract to increase their total value.

2. Assemblage

An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The combining of two or more adjoining lots into one larger tract to increase their total value.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building - less depreciation.

3. Supply and demand

The combining of two or more adjoining lots into one larger tract to increase their total value.The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building - less depreciation.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.

4. Cost approach

The combining of two or more adjoining lots into one larger tract to increase their total value.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building - less depreciation.

5. Change

The combining of two or more adjoining lots into one larger tract to increase their total value.The appraisal principle that holds that no physical or economic condition remains constant.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.

6. Anticipation

The appraisal principle holding that value can increase or decrease - based on the expectation of some future benefit or detriment produced by the property.The combining of two or more adjoining lots into one larger tract to increase their total value.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

7. Economic life

The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The number of years during which and improvement will add value to the land.The combining of two or more adjoining lots into one larger tract to increase their total value.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.

8. Broker's price opinion (BPO)

An estimate of value - prepared by a real estate licensee - most often requested by a lender to determine that the property actually exists; a BPO is not an appraisal.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The combining of two or more adjoining lots into one larger tract to increase their total value.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

9. Reproduction cost

The appraisal principle that follows the interrelationship of the supply of and demand for real estate.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The combining of two or more adjoining lots into one larger tract to increase their total value.The construction cost at current prices of an exact duplicate of the subject property.

10. Plottage

The combining of two or more adjoining lots into one larger tract to increase their total value.The increase in value or utility resulting from the consolidation (assemblage) of two or more adjacent lots into one larger lot.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

11. Competition

An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The combining of two or more adjoining lots into one larger tract to increase their total value.The appraisal principle that states that excess profits generate competition.

12. Appraisal

An estimate of the quantity - quality - or value of something. The process which conclusions of property value are obtained. Can only be done by an appraiser.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The combining of two or more adjoining lots into one larger tract to increase their total value.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.

13. Value

The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The power of a good or service to command other goods in exchange for the present worth of future rights to its income or amenities.The combining of two or more adjoining lots into one larger tract to increase their total value.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.

14. Uniform Residential Appraisal Report (URAR)

The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The combining of two or more adjoining lots into one larger tract to increase their total value.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.A form approved for residential appraisals required by many government agencies.

15. Functional obsolescence

An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The combining of two or more adjoining lots into one larger tract to increase their total value.A loss of value to an improvement to real estate arising from functional problems - often caused by age or poor design.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

16. Progession

An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.An appraisal that state that - between dissimilar properties - the value of the leser quality property is favorably affected by the presence of the better-quality property.The combining of two or more adjoining lots into one larger tract to increase their total value.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

17. Gross rent multiplier (GRM)

The combining of two or more adjoining lots into one larger tract to increase their total value.The figure used as a multiplier of the gross monthly income of a property to produce an estimate of the property's value.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

18. Uniform Standards of Professional Appraisal Practice (USPAP)

The combining of two or more adjoining lots into one larger tract to increase their total value.A set of minimum quality control standards that represent the generally accepted and recognized standards of appraisal practice; updated every two years.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

19. Replacement cost

The combining of two or more adjoining lots into one larger tract to increase their total value.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property - but serves the same purpose or function as the original.

20. Sales comparison approach

The appraisal principle that follows the interrelationship of the supply of and demand for real estate.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The combining of two or more adjoining lots into one larger tract to increase their total value.The process of estimating the value of a property by examining and comparing actual sales of comparable properties.

21. External obsolescence

The combining of two or more adjoining lots into one larger tract to increase their total value.Reduction in a property's value caused by outside factors (off property).An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

22. Capitalization rate

The combining of two or more adjoining lots into one larger tract to increase their total value.The rate of return a property will produce on the owner's investment.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.

23. Comparative market analysis (CMA)

A comparison of the prices of recently sold homes that are similar to a listing seller's home in terms of location - style - and amenities.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The combining of two or more adjoining lots into one larger tract to increase their total value.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.

24. Conformity

An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.The combining of two or more adjoining lots into one larger tract to increase their total value.The appraisal principle that follows the interrelationship of the supply of and demand for real estate.The appraisal principal holding that the greater the similarity among properties in an area - the better they will hold their value.

25. Depreciation

The appraisal principle that follows the interrelationship of the supply of and demand for real estate.An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property - assuming that no costly delay is encountered in making the substitution.(1) In appraisal - a loss of value in property due to any cause including physical deterioration - functional obsolescence - and external obsolescence; (2) in real estate investment - an expense deduction for tax purposes taken over the period ownership of income property.The combining of two or more adjoining lots into one larger tract to increase their total value.

⚡ Recently practiced quizzes in this topic

Live quiz activity

Real Estate Agent License Practice Test Commercial Real Estate Glossary Indiana Prelicensing Broker Course Questions Legal Rights (Land) Real Estate Basics Knowledge Test Modern Real Estate Practice In North Carolina PSI Real Estate Sales Exam Questions Real Estate Agent Practice Test Certified Apartment Manager Exam Questions Texas Real Estate Practice Exam

25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com