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Texas SAE Real Estate Appraisal Exam 2 2025 - 2026
With Real Exam Questions And Correct Answers/ TX
SAE Real Estate Appraisal Test 2025- 2026 (brand
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Which two terms are synonymous and are defined as the amount of rent typical for properties that are comparable to the subject property? Economic rent, market rent Which of the following properties would you expect to appraise highest? Q1, C There are many advantages to holding property within a trust. One of the most important advantages is that some trusts ______. Avoid probate Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided? Barbie owns two-thirds, and Midge owns one-third. Why would an appraiser use gross income multiplier, direct capitalization, or yield capitalization—rather than gross rent multiplier—to determine the value of an income property?
The property has income from other sources in addition to rent. A young professional couple from out of state have been referred to you. The couple knows nothing about the area and would like some demographic information before they buy a home in the area. Basically, they’d like a breakdown by age of the population. Which of the following would be the best tool to present this information? Pie chart Which of the following statements about a property owner placing a restriction on a deed is true? The owner may place a time limit on the restriction. A restriction may run with the land forever (appearing on all future deeds), or it may have a time limit. What’s another name for the building plan? Blueprint When a large tract of land is purchased and prepared for development, and then split into parcels, the value of each lot as a residential building site must be determined. The method used to value each individual parcel is known as the ______ method.
Line graph When following the Uniform Standards of Professional Appraisal Practice process for real estate appraisal, an appraiser will _________ after determining the subject property’s highest and best use. Estimate value of the land Which of these situations requires the services of a state-licensed or state-certified appraiser? A lender needs an appraisal for a federally related transaction. How is the adjusted sales price calculated for a comparable property using the sales comparison approach? By adding or subtracting the sum of the adjustments made on a comparable property When using the sales comparison approach, appraisers add or subtract the net adjustment (the sum of adjustments for a property) from the sale price of a comparable to get an adjusted sale price.
The fewer properties on the market, the greater the scarcity. What's the effect on prices? Prices are pushed upward. Maxwell is a tenant. His lease has a fixed rent in which the landlord pays all taxes, insurance, and maintenance expenses. What type of lease does he have? Gross In a gross lease, the tenant pays a fixed rent, and the landowner pays taxes, insurance, and maintenance expenses for the property. We have an expert-written solution to this problem! Which types of REITs don’t buy properties but instead invest in real estate debt? Mortgage REITs Which land valuation method uses the amount of ground rent the land will generate, and then capitalizes that income into a value for the land using a capitalization rate?
Control Lenders can submit electronic appraisal reports, such as the Uniform Residential Appraisal Report through what tool on the Fannie Mae website? Uniform Collateral Data Portal Which type of roof features a ridge beam or girder that forms the top line of the roof? Rafter roof Martin placed all of his real estate investments in a trust, and the proceeds are distributed through the trust to his son Nathan. Martin still manages the properties indirectly, and Nathan currently benefits, as he’s past the required beneficiary age of 18. What type of trust is this? Living trust With a cooperative, the transfer of ownership ______.
Requires board approval The transfer of cooperative ownership requires approval of the cooperative board. Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have? Fee simple determinable A fee simple determinable has limitations as to what can or can’t be done with a property. It uses phrases such as "so long as," "while," or "during" to describe the required condition. We have an expert-written solution to this problem! Properties that are similar to the subject property in terms financing, conditions of sale, market conditions, location, and physical characteristics are known as ______. Comparables When the land value is known, but the building value is unknown, the ______ technique can be used.
A detailed analysis of market conditions, the property itself, comparables, land value, and construction costs How is the gross adjustment calculated in the sales comparison approach? Totaling the dollar amounts of the adjustments, ignoring whether the numbers are positive or negative When calculating a gross adjustment, appraisers add the dollar amounts of the adjustments, ignoring whether the numbers are positive or negative. Because of the topography of Elsie’s and Lawrence’s respective yards, Elsie had to install her fence at the top of a hill, which is actually two feet over Lawrence’s property line. What word or phrase best describes Elsie’s fence? Encroachment Elsie’s fence is an encroachment on Lawrence’s property. An encroachment is a fixed intrusion onto another person’s property. Samantha, an appraiser, is determining which of the living room fixtures to include in her report. Which of the following items will she select?
Blinds Which of the following statements is true about the allocation method? It provides a broad indicator of market value. Which of the following is needed in order for the sales comparison approach to yield reliable results? Sufficient sales data about recently sold comparable properties Rico is an appraiser who is performing a valuation on a property. What's another term for what Rico is doing? Formal appraisal Another term for a valuation is a formal appraisal.
Lenders like to see a property “bracketed” in terms of the elements and units of comparison, such as age, transaction price, and other features. Nikki is using the comparative unit method to find the reproduction cost of a structure. By what other name is this method known? Square-foot The square-foot method is also known as the comparative unit method. This method includes both the square-foot and cubic-foot methods. Which of the following is true about air rights? They allow the owner to use the open space above buildings. Air rights involve the right to use the open space above buildings up to a height established by law. The sixth step in an appraiser’s process for finding the value of a property describes _______ possible approaches to valuation. Three
We have an expert-written solution to this problem! A sole proprietor is a familiar business model. If you practice real estate as a sole proprietor, which of the following is a true statement? You're an independent contractor. How many years of income does yield capitalization analyze? Several Direct capitalization analyzes a single year of income, while yield capitalization analyzes cash flows for multiple future years. An undesirable house design that can only be fixed by knocking down walls and starting from scratch, but would not return value commensurate with that expense is an example of which type of depreciation? Incurable functional obsolescence Incurable functional obsolescence refers to a defect that can’t be easily fixed or economically justified.
What dictates a leasehold estate’s value? The relationship between scheduled rent and the market rent If the scheduled rent is lower than the market rent, it creates a positive leasehold interest to the tenant’s benefit. But if the scheduled rent is higher than market rent, it creates a “lease premium” which benefits the lessor. The purpose of building codes is to ______. Ensure a safe, properly functioning environment for the building's occupants Which of the elements of comparison must be applied first? Financing terms The Johnsons have owned a small restaurant for more than 20 years. It’s open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons’ restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____.
Inverse condemnation Inverse condemnation occurs when a property's value is negatively affected by government regulation, but the owner is not offered just compensation according to the requirements of the Takings Clause. A manufactured home is required to have a ______ affixed to the exterior of each section. HUD code tag Sam wants his front door to have frosted green glass panes. What type of door is he looking for? Panel To determine property value with the cost approach, the appraiser subtracts the accrued depreciation from the ______ and then adds the site value. Reproduction/replacement cost The formula for the cost approach is: reproduction/replacement cost – accrued depreciation + site value = property value.
Reproduction costs When appraising newer properties, it’s pretty easy to estimate the reproduction costs, because the appraiser basically conducts a cost analysis with similar structures of the same or nearly the same age. With which of the four methods used to find the reproduction cost of a structure does the appraiser multiply the cost per unit of measure of each component part of the subject property’s structure (by the number of units of that component part in the subject)? Unit-in-place This is a description of the unit-in-place method. The total cost of the components is the cost of a new structure. Which of the following statements about the unit-in-place and square-foot methods is true? Both methods rely on information provided by cost manuals. Because the unit-in-place method provides a much more detailed breakdown of the type of structure than the square-foot method, it tends to be more accurate and time-consuming than the square-foot method. Both methods use cost manuals.
Where's the load carried when a roof truss system is in place? the outer walls The truss carries the load to the outer walls, allowing for greater flexibility when placing the inner walls. What's one measure a builder would likely take to improve a site's drainage? Grade the lot Grading can help direct water away from the foundation. Lester is interested in a two-bedroom unit in a cooperative. A residence in a cooperative, unlike a condominium, is legally considered ________. Personal property Cooperatives are personal property, whereas condominiums are real property. Which of the following is true about the capitalization process?
