Connecticut Property Valuation
Practice Questions & Answers (2026)
Property valuation questions on the Connecticut exam test the three approaches to value (sales comparison, cost, and income), how appraisals work, and what affects market value. The Connecticut Real Estate Commission tests when each approach is most appropriate, how adjustments are made in the sales comparison approach, and what factors an appraiser considers vs. ignores. Connecticut candidates often struggle with income approach calculations — particularly gross rent multiplier (GRM) and net operating income (NOI) — and with the cost approach depreciation calculations. These are high-difficulty math and concept questions where careful study of the explanations pays off significantly on exam day.
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Connecticut Property Valuation — Practice Questions & Answers
136 questions on Property Valuation from the Connecticut real estate question bank. First 10 are free — sign up to unlock all 136.
Q1. An appraiser using the cost approach to value a property would:
Explanation
The cost approach estimates value as: Land Value + Replacement Cost New of Improvements − Accrued Depreciation. It is most useful for new construction, special-use properties, and when comparable sales data is limited.
Q2. When using the sales comparison approach, an appraiser makes adjustments to comparables to account for differences with the subject property. If a comparable has a feature the subject lacks, the adjustment to the comparable is:
Explanation
If the comparable is superior to the subject (has a feature the subject lacks), the comparable's price is adjusted downward (negative adjustment) to reflect what the comparable would have sold for if it were like the subject.
Q3. Economic obsolescence (external obsolescence) in an appraisal is caused by:
Explanation
Economic (external) obsolescence results from negative influences outside the property, such as proximity to a noisy highway, declining neighborhood, or nearby industrial facility. It is generally incurable.
Q4. Regression, as an appraisal principle, means that:
Explanation
The principle of regression states that a higher-value property placed among lower-value properties will tend to decrease in value. The opposite principle, progression, says a lower-value property benefits from being surrounded by higher-value properties.
Q5. The income approach to value is most appropriate for valuing which type of Connecticut property?
Explanation
The income approach is used to value income-producing properties by capitalizing their net operating income. It is most applicable to apartment buildings, commercial properties, and other investment real estate.
Q6. Capitalization rate (cap rate) is calculated by:
Explanation
Cap Rate = Net Operating Income ÷ Property Value (or Price). It represents the expected rate of return on an investment property and is used to estimate value when the cap rate and NOI are known.
Q7. A Connecticut rental property generates annual gross income of $120,000 and has operating expenses of $45,000. What is the net operating income (NOI)?
Explanation
NOI = Gross Income − Operating Expenses = $120,000 − $45,000 = $75,000. Note: Debt service (mortgage payments) is not included in operating expenses for NOI calculation.
Q8. If a Connecticut income property has an NOI of $90,000 and the market cap rate is 6%, what is the estimated value using the income approach?
Explanation
Value = NOI ÷ Cap Rate = $90,000 ÷ 0.06 = $1,500,000.
Q9. The principle of substitution in real estate appraisal states that:
Explanation
The principle of substitution holds that a prudent buyer will not pay more for a property than the cost of acquiring a comparable substitute. This principle underlies the sales comparison approach.
Q10. Functional obsolescence in real estate appraisal refers to:
Explanation
Functional obsolescence is loss of value from within the property due to features that are outdated, inadequate, or in excess of what buyers currently want (e.g., only one bathroom in a large home, outdated kitchen layout).
Q11. In the sales comparison approach, a comparable sale that sold 18 months ago would typically require:
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