NSAR SALESPERSON LICENSING

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NSAR SALESPERSON LICENSING

COURSE

WITH CORRECT SOLUTIONS.

Subjective Value - correct answer- the perception of value in the minds of the buyer and seller

Objective Value - correct answer- related to the direct cost of creating (e.g. acquiring a lot and building a home)

Types of value found in the Canadian Economy - correct answer- -insurable; book -appraised -salvage -assessed -liquidation -loan -sentimental

Three approaches that appraisers use to establish an estimate of value - correct answer- -cost approach (actual cost) -income approach (subjective value) 1 / 4

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-direct comparison approach (subjective value)

market price - correct answer- the price for an individual property

market value (aka value in exchange) - correct answer- an estimate of value arising from many sales (market prices)

Definition of Market Value - correct answer- The most probable price, as of a specified date, in cash, or in terms equivalent to cash or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair- sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.

What brokerage should you join after you pass this exam? Let's

chat! - correct answer- Instagram: @laurahalifaxrealtor

Facebook: Laura Sumarah

Text: 902 210 9876

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The 4 assumptions of market value - correct answer- 1) reasonable time 2) no undue pressure 3) prudent behaviour 4) informed buyer and seller

15 Principles of Value - correct answer- - Principle of Anticipation

• Principle of Balance
• Principle of Change
• Principle of Competition
• Principle of Conformity
• Principle of Consistent Use
• Principle of Contribution
• Principle of External Factors
• Principle of Highest & Best Use
• Principle of Increasing/Decreasing Returns
• Principle of Progression
• Principle of Regression
• Principle of Substitution
• Principle of Supply & Demand
• Principle of Surplus
• Productivity
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Principle of Anticipation - correct answer- Buyers buy the present worth of future benefits (e.g. thinking about resale value)

Principle of Balance - correct answer- Maximum value is maintained through balance (e.g. huge house with only one car garage is not balanced)

Principle of Change - correct answer- A value today is valid only for today (e.g. large portion of the community will be losing their jobs = lower value of house as lower demand)

Principle of Competition - correct answer- Excess profit breeds ruinous competition (two people see same opportunity and both jump in; neither will achieve their anticipated profits)

Principle of Conformity - correct answer- Reasonable conformance with existing standards protects value (houses that conform with one another hold their value)

Principle of Consistent Use - correct answer- No double dipping when analyzing value (can't give value to the house on a

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