REE 4103 Exam 2 Study Guide 2024 Questions and Answers
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Course
REE 4103
Institution
REE 4103
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
In the subject property's neighborhood, improved properties are selling for prices in a range of $140,000 to $160,000. Res...
REE 4103 Exam 2 Study Guide 2024
Questions and Answers
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
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, allocation, extraction, and abstraction
Sales comparison, land residual, ground rent capitalization, and determination
Sales comparison, land residual, allocation, and extraction
Highest and best use, sales comparison, and asset management - Sales comparison,
land residual, allocation, and extraction
Land is always valued considering
Its highest and best use as improved.
Its highest and best use as though vacant.
The improvements thereon
The likelihood of conversion to commercial zoning - Its highest and best use as though
vacant.
Price per front foot is
,REE 4103 Exam 2 Study Guide
a physical unit of comparison
not as accurate as price per acre
rarely used in residential site analysis
an accurate guide to site marketability - a physical unit of comparison
Residential sites are often valued using
A price per square foot
A price per animal unit month
A price per room
A price per cubic meter - A price per square foot
The subdivision development analysis technique is
More accurate than a well-prepared sales comparison analysis
Less accurate than the allocation method
Is very applicable when the main criteria of value is the number of lots that can be
developed out of a parcel of land
Is not an accepted technique for the valuation of land - Is very applicable when the
main criteria of value is the number of lots that can be developed out of a parcel of land
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
Have the same type of building on them (after the sale)
Show the maximum value for the subject property
Show the minimum value for the subject property - Have the same or similar highest
and best use
,REE 4103 Exam 2 Study Guide
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
The land valuation technique that relies on an analysis of ratios of land value to property
value is
Allocation
Extraction
Interpolation
Land residual - Allocation
Which approach would be best to use when appraising a 15-20 year old house?
Cost
Feasibility study
Sales comparison
Income capitalization - Sales comparison
An open market transaction would not be one
Listed for at least 30 days
Listed on a multiple listing service
Advertised in local newspapers
Sold to a relative - Sold to a relative
Comparable sales that require no adjustment to the subject are usually sales
Within two years
Of properties equal in square footage
, REE 4103 Exam 2 Study Guide
In the same neighborhood
In new developments with nearly identical properties - In new developments with nearly
identical properties
The principle of _____________ states that a buyer will not pay more for a site than for
another equally desirable one:
It must have sold within five years
It must be a competitive property
It must be an open market transaction
Both (b) and (c) - It must be a competitive property
It must be an open market transaction
Physical units of comparison are a substitute for adjusting for:
Location
Terms of financing
Age
Size - Size
Property sale prices
Are negotiated by appraisers
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