Valuation & Appraisal – Texas Real Estate Salesperson Exam
Master the key concepts of real estate valuation and appraisal for the Texas Real Estate Salesperson Exam. These 22 flashcards cover appraisal methods, value principles, market analysis, and appraisal regulations tested on the Texas exam.
Or subscribe for $9.99/mo and study anything
Study Modes
Preview Questions
Question 1
What is the definition of 'market value' in real estate appraisal?
Answer
Market value is the most probable price a property would bring in a competitive, open market under fair sale conditions, with both buyer and seller acting knowledgeably and without undue pressure.
Question 2
What is the difference between 'value in use' and 'value in exchange'?
Answer
Value in use is the value a property has to a specific user for a specific purpose, while value in exchange (market value) is the price the property would command in an open, competitive market.
Question 3
Which federal law regulates appraisers and requires state licensing or certification for appraisers involved in federally related transactions?
Answer
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 requires state-licensed or state-certified appraisers for federally related real estate transactions.
Question 4
What does the term 'reconciliation' mean in the appraisal process?
Answer
Reconciliation is the final step in the appraisal process where the appraiser reviews and weighs the value estimates from each of the three approaches to arrive at a single, final value opinion.
Question 5
What does the appraisal principle of 'substitution' state?
Answer
The principle of substitution states that the maximum value of a property tends to be set by the cost of acquiring an equally desirable substitute property, assuming no costly delay.
Showing 5 of 22 cards. Unlock the full deck →
Related Study Decks
Agency & Representation – Texas Real Estate Salesperson Exam
31 cards • Free
Fair Housing Laws – Texas Real Estate Salesperson Exam
24 cards
Finance & Mortgages – Texas Real Estate Salesperson Exam
28 cards
Land Use & Zoning – Texas Real Estate Salesperson Exam
20 cards
Property Ownership – Texas Real Estate Salesperson Exam
25 cards
Texas License Law - Real Estate Salesperson Exam Prep
32 cards
Ready to pass your exam?
Join thousands of students using Prepdex to study smarter, not harder.
Buy This Deck — $12.99Or subscribe for $9.99/mo and study anything