100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
REE 4103 Exam 2 Questions and Answers UPDATED 2024 Graded A $14.99   Add to cart

Exam (elaborations)

REE 4103 Exam 2 Questions and Answers UPDATED 2024 Graded A

 3 views  0 purchase
  • Course
  • REE 4103
  • Institution
  • REE 4103

In the subject property's neighborhood, improved properties are selling for prices in a range of $140,000 to $160,000. Research reveals a typical land value-to-total property value ratio of 20%. What is the range of value for a similar site in this neighborhood? - $28,000 to $32,000 Land can be ...

[Show more]

Preview 3 out of 23  pages

  • September 2, 2024
  • 23
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • ree 4103 exam 2
  • ree 4103
  • REE 4103
  • REE 4103
avatar-seller
PossibleA
REE 4103 Exam 2 Questions and
Answers UPDATED 2024 Graded A

In the subject property's neighborhood, improved properties are selling for prices in a
range of $140,000 to $160,000. Research reveals a typical land value-to-total property
value ratio of 20%. What is the range of value for a similar site in this neighborhood? -
$28,000 to $32,000


Land can be valued by - Sales comparison, land residual, allocation, and extraction


You are asked to appraise a vacant building lot. The neighborhood is about 75% built
up. Most lots in the area are from 55 to 65 feet wide; the lot under appraisal is 60 feet.
Comparable sales indicate that lots are selling at $120 to $150 per front foot. What is a
good estimate of the price range for this lot? - $7,200 to $9,000


Residential sites are often valued using - A price per square foot


The subdivision development analysis technique is - Is very applicable when the main
criteria of value is the number of lots that can be developed out of a parcel of land


Price per front foot is - a physical unit of comparison


The land valuation technique that relies on an analysis of ratios of land value to property
value is - allocation


Land is always valued considering - Its highest and best use as though vacant.


To estimate its market value, the land under an improved property is best compared to
sales of vacant land that - Have the same or similar highest and best use


REE 4103 Exam 2

,If the site represents 40% of the total value in a particular neighborhood, how much land
value would be allocated from a $200,000 sale of a single family home? - $80,000.00


Physical units of comparison are a substitute for adjusting for: - size


An open market transaction would not be one: - Sold to a relative


The principle of _____________ states that a buyer will not pay more for a site than for
another equally desirable one: - substitution


Units of comparison - Are items that represent a breakdown of the price based on a
significant variable


Property sale prices - Are negotiated between buyers and sellers


For a property to be considered as a comparable: - It must be a competitive property


It must be an open market transaction


Current listings that have been exposed to the market for a reasonable time - Tell the
appraiser what the subject's market value cannot exceed


Which approach is usually the most applicable for appraising residences? - sales
comparison


Which approach would be best to use when appraising a 15-20 year old house? - sales
comparison


Comparable sales that require no adjustment to the subject are usually sales: - in new
developments with nearly identical properties

REE 4103 Exam 2

, Comparative analysis is - A general term used to describe the process by which
qualitative or quantitative techniques are used to derive a value opinion in the sales
comparison approach


Valuation assignment for the subject property is for both the building and land.· A
Comparable Office Bldg owned and sold separately from its site (land), which is subject
to a 99-year ground lease.
· The comparable 80,000 sf bldg sold (separately from the land) for $4,000,000, or
$50/sf.· Assume the annual ground rent is $250,000, which is consistent with the
market. Market Land Capitalization rate is 11%.If no other adjustments were made
except for the value of the land, what would be the final adjusted sales price of this
comparable? - $6,272,727.27


In the same market, a 12,000 sf shopping center with similar characteristics sold for
$323,000 five years ago, and another 12,000 sf property sold last year for
$365,000.What is the average annual change per unit (sf) for those comparable
properties? - $0.87/sf


Comparable sale sold for $150,000 with down payment of $30,000 · Seller financed
mortgage for a 30-year term @ 7% interest compounded monthly.
· Homes in area are typically held for 30 years
· Market derived interest rate is 9% compounded monthly.(Implicit in this method is the
assumption that the difference between the
market interest rate and the contract rate will remain constant for the entire 30 years)
What is the adjusted sale price after taking into consideration financing terms? -
$129,222.04


Consider a corner vacant lot being appraised and two sales of vacant lots similar to the
subject in most respects except for location. Comparable A, a corner lot with frontage
on two streets, was sold for $12/sf.

REE 4103 Exam 2

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller PossibleA. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79064 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$14.99
  • (0)
  Add to cart