REE 4103 Exam 2 Questions and
Answers 100% Correct | Rated 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
simi...
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
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
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
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 JOSHCLAY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
