Residential Market Analysis and Highest & Best Use Tests Compilation Bundle

A property owner constructs a six-car garage at a cost of $80,000. It only adds $40,000 in value to the property. What economic principle does this best demonstrate? CORRECT ANSWERS: Contribution What are the four agents of production? CORRECT ANSWERS: land, labor, capital, coordination The ...

An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area. (General) correct answer: Market Study The study of how a specific property is expected to perform in a specific market. It expands on a market analysis by addressing a specific p...

Which segment of the real estate market does the subject product satisfy? Who is the market? Does the product provide what the buyer is looking for? correct answer: Utility Is there a demand for this real estate product? Are there any potential buyers? correct answer: Desire How competitive ...

To measure the trends of the market area, the appraiser must ask questions about ______________________. Balance All of these items Supply Demand correct answer: All of these items In a market area, there were 192 single-family sales last year, and there are currently 72 properties on the m...

An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area. (General) correct answer: Market Study The study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by a...

The appraiser must perform the necessary market analysis to obtain enough information to ___________________________. Complete the Sales Comparison Approach Fill out the URAR Make the highest and best use determination for the subject property. Educate the client correct answer: Make the highes...

The power of a given commodity to satisfy a need or want is called __________________. correct answer: Utility The development of a vacant land area is _____________ the highest and best use of the land. correct answer: Not Always The Consistent-Use Theory says the _______________ must all b...

People tend to purchase homes in areas with amenities and facilities, and where they feel insulated from adverse property conditions. This is an example of the principle of: Conformity Substitution Change Competition correct answer: Conformity Which of these can increase conformity in a ne...

Which of the following guides the control of the money supply in the USA? Capital Market Money Market Monetary Policy Fiscal Policy correct answer: Monetary Policy For highest and best use as improved, an analysis of net operating income equals: *Gross income potential minus all expenses an...

Which statement is TRUE regarding market identification? The market should include a cross-segment of all different property types in a geographic area. Market identification is best accomplished by using maps. The appraiser should draw market boundaries in a way that will support his or her expe...

Loan Value is usually a percentage of the _______________. correct answer: Appraised value or Market Value The development of a vacant land area is ______the highest and best use of the land. correct answer: Not always The middle number found by arranging the numerical data sequentially from...

Capitalization Rate correct answer: Measures the risk involved in an investment. Thus, the higher the risk the higher the CAP rate; the lower the the risk the lower the CAP rate. Leasing a building for a hardware store involves higher risk of vacancy than leasing for a post office and results in a ...

The separation and identification of the parts of the whole" is part of the process of correct answer: analysis Most appraisal assignments require an opinion of: correct answer: market value A study of the market as a whole, as well as the investigation of conditions of a component of that ...