Valuation Practice Questions
120 questions on valuation, each with an explanation. This area covers appraisal approaches, market value, depreciation, cma.
Take the full test. Answers and explanations are shown when you submit, as on exam day.
Depreciation is properly classified as curable when:
This quiz is a study aid, not the real exam. Our questions are written by us to match the published content outline. They are not actual exam questions, no score here predicts a pass, and this site is not affiliated with, endorsed by, or sponsored by PSI, Pearson VUE, ARELLO, any state real estate commission, or any government agency. Your state commission and your candidate handbook are the only authoritative sources.
10 sample valuation questions, answered
Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.
1. Depreciation is properly classified as curable when:
Why: An item is curable when "The cost to correct the item is no more than the value the correction adds", so the repair is economically justified. Who performs the work is irrelevant; the test is financial, not practical.
2. An appraiser estimates the cost of an exact replica of an ornate historic building. Which cost concept fits?
Why: Reproduction cost concerns recreating the existing structure. Replacement cost instead focuses on a substitute with comparable utility.
3. A property rents for $2,000 a month in a market where the gross rent multiplier is 140. Its indicated value is:
Why: A monthly GRM multiplies monthly rent: $2,000 × 140 = $280,000. Watch whether the multiplier given is monthly or annual — the exam swaps them deliberately.
4. A newly built specialized public-use building has few comparable sales. Which approach may provide useful additional evidence?
Why: The cost approach can be useful for new or specialized improvements. Its applicability still depends on the assignment and available data.
5. A buyer can obtain an equally useful nearby property for less money. Which principle explains pressure on the subject's price?
Why: The availability of a comparable substitute limits what a rational buyer would pay. The comparison must account for utility, timing and other relevant differences.
6. A lender making a federally related mortgage loan needs an opinion of value for underwriting. The lender must obtain:
Why: Federally related transactions require "An appraisal from a state-licensed or state-certified appraiser" so the valuation is independent of the sale. A comparative market analysis is a listing tool and carries no appraisal credential behind it.
7. A 30-year-old roof at the end of its useful life represents:
Why: Wear from age and use is physical deterioration, and it is curable when replacing the item adds at least as much value as it costs.
8. A modest home stands in a block of much larger and more expensive homes, and it is worth more than it would be among similar modest homes. This illustrates:
Why: When superior surroundings lift the value of a lesser property, the effect is "Progression". Regression is the mirror image, in which the inferior neighbors drag down the value of a superior property.
9. A comparable sold for $275,000 and has one bathroom, while the subject has two. The market shows the second bathroom is worth $9,000. What value does this comparable indicate for the subject?
Why: A feature the subject has and the comparable lacks is added to the comparable: $275,000 plus $9,000 equals $284,000. Subtracting to reach $266,000 would treat the superior subject as though it were the inferior property.
10. A noisy industrial operation opens next to a residence and reduces demand for it. Which depreciation category is most relevant?
Why: The negative influence originates outside the property. Repairing the residence itself may not remove that external value loss.
Where this weighting comes from
Weightings come directly from the test provider’s published examination content outline for the national portion of the salesperson exam. PSI publishes percentages only; Pearson VUE publishes scored-item counts only. PSI and Pearson VUE use different content taxonomies, so their weightings are not interchangeable and should not be averaged. Check which provider administers your state’s exam, and confirm against the current candidate handbook before you study. Outlines are revised periodically and older versions stay in circulation online. View the PSI outline.