REE 4103 Exam 2 Questions and Answers UPDATED 2024 Graded A
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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 ...
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
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