Subject 2 — Real Estate Valuation Outline (不動產估價概要)
Real Estate Broker Ordinary Examination · Professional Subject · Essay + MCQ
Scope and exam format
Valuation turns the abstract idea of market value into a defensible number. Exam content centres on three pillars: valuation principles, the three main valuation approaches, and the Technical Rules. Format is mixed essay + MCQ: MCQs test concepts and formula application, while essays often demand a full valuation workflow or a comparison of methods.
This is the most formula-heavy of the four professional subjects. Drilling MCQs in the app gets formulas and adjustment steps to reflex speed.
Frequently tested topics
- Valuation principles: highest and best use, substitution, anticipation, supply and demand, contribution, balance, increasing/diminishing returns
- Sales Comparison Approach: selection of comparables, condition adjustment, price date adjustment, locality adjustment, individual factor adjustment, weighted average
- Income Approach: direct capitalisation, discounted cash flow (DCF), choice of capitalisation rate and discount rate, effective gross income and net operating income
- Cost Approach: reproduction vs replacement cost; physical, functional and economic depreciation; land development analysis method
- Real Estate Valuation Technical Rules: valuation workflow, method selection, required contents of the valuation report
- Practical questions: picking the appropriate method given the facts, computing values, reconciling results across the three methods to a final figure
Study approach
Start by memorising the valuation principles (these surface as definitions or short MCQs), then drill the three approaches one at a time, mastering the "steps + formulas" of each. Every approach has a fixed workflow — turn the workflow into muscle memory so the facts in the prompt go straight into the calculation.
Use the app to drill MCQ details that often trip people up: formula application, direction of adjustments (positive vs negative), derivation of capitalisation rates. For the Technical Rules, focus on statute memorisation and use past papers to lock in the recurring "required contents" question type.
Free Practice Questions
These 2 questions are identical to the app's free preview for this subject — tap an option to answer and see the explanation instantly. All 8 free questions →
A convenience store needs to lease two adjacent shop units; after knocking them through and combining them, the total floor area meets the company's needs. The rental value formed for the purpose of this combined use, expressed in monetary terms, is called:
Why: Under Article 2 of the Real Estate Appraisal Technical Regulations, limited rent (the rental counterpart of limited price) arises from a specific relationship between the subject property and another property, such as merger, partition, or adjoining use. Two adjacent shops being combined is a classic merger-use case, so the answer is limited rent. Normal rent reflects ordinary market supply and demand; special rent corresponds to special price (for properties with no market); there is no formal category called 'combined rent.'
Which of the following is NOT included when estimating the total expenses of a subject property?
Why: Under Article 32 of the Real Estate Appraisal Technical Regulations, total expenses under the income approach generally include depreciation reserves, maintenance, management, taxes (land value tax, building tax), ground rent, insurance, and vacancy/collection-loss reserves. Loan interest is a financing cost of the owner, not an operating necessity, and must not be included; the capitalization rate already reflects required returns to capital, so including loan interest would double-count.
Real Estate Valuation MCQs live in the app
500+ practice questions, mock exams, progress tracking. Every question is sourced from public past papers with original explanations.
Further reading: Exam Guide · 4 Subjects overview · FAQ · ← Taiwan Real Estate Broker app
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