Download RESIDENTIAL MARKET ANALYSIS and more Exams Business Economics in PDF only on Docsity!
RESIDENTIAL MARKET ANALYSIS
HIGHEST & BEST USE FINAL EXAM QUESTIONS WITH COMPLETE SOLUTIONS
"The factors of ______________ are the predominant forces to ultimately determine the value for housing in the marketplace. Marketability and durability Supply and demand Cost and value
Substitution and change - Correct Answer Supply and demand"
""The geographic region from which a majority of demand comes and in which the majority of competition is located" is the definition of _________________. Neighborhood Market Area District
Market - Correct Answer Market Area"
"The capacity of a furnace heating system is measured in _______. Amps BTUs Volts
Tons - Correct Answer BTUs"
"A property with restaurants and retail shops on the lower level and apartments on levels above is called a(n) ___________ property. Alternate-use Multi-Use Conclomerate
Cooperative - Correct Answer Multi-Use"
"When the land value is subtracted from the sales price, the _______________________ is identified. Effective age of the improvements Depreciated value of the improvement Remaining economic life
Age/Life Ratio - Correct Answer Depreciated value of the improvement"
"The ability of market participants to purchase a property is called _________________________________. Economic Purchasing Power Effective purchasing power Mortgage ability
Loan-to-Value Ratio - Correct Answer Effective purchasing power"
"What type of value is actually an accounting term? Intangible Value Going-Concern Value Book value.
Tax Value - Correct Answer Book value."
"When demand is higher than supply, the value of a product _____________. Decreases Remains the same Increases
There is no correlation - Correct Answer Increases"
"_______________ Value is the price a property will sell for, if required to be sold very quickly. Liquidation Sheriff's Sale Liquid
Foreclosure - Correct Answer Liquidation"
"Part of the definition of Highest and Best Use is that it is the use that "results in the __________ value." Typical Highest Forecasted
Average - Correct Answer Highest"
"When improvements are added, such as roads, water and sewer; then _________ becomes _____________. Site, land Land, a site Land, a tract
Site, a development - Correct Answer Land, a site"
"The Principle of Substitution holds that an ___________ buyer will not spend more for a property than the cost of acquiring a suitable substitute property. Principle of Substitution. Informed Typical Motivated
Disinterested - Correct Answer Informed"
"Another name for Assessed Value is ______________ Value. Insurance Investment
$842 - Correct Answer $842"
"To provide an estimate of the length of time it took to sell properties during the period of analysis, we can look at _______________. Absorption rates. Expiration rates Interest rates
Rental rates - Correct Answer Absorption rates."
"__________ Land cannot be separated. Integral Extra Surplus
Excess - Correct Answer Surplus"
"There were 36 sales in a subdivision in the last year, and there are currently 12 properties on the market. What is the monthly absorption rate? 12 8 6
3 - Correct Answer 3"
"______________ windows are the standard in most parts of the country. Celestory Single glazed Triple glazed
Double glazed - Correct Answer Double glazed"
"Data that are readily available from public sources such as the local chamber of commerce, the community city hall, or the area public library is known as __________ data. Specific Secondary Primary
Archival - Correct Answer Secondary"
"In the USPAP Scope of Work Rule, it says "Communication with the client is required to establish most of the information necessary for problem identification. However, the identification of relevant characteristics is a judgment made by the _________________. Client Lender Client and appraiser
Appraiser - Correct Answer Appraiser"
"A community's long range plan is called the ____________. Master Plan Building Code Zoning Ordinance
Community Blueprint - Correct Answer Master Plan"
"The owner of a unit in a cooperative owns _______________. Stock in the corporation Undivided rights to common areas A three dimensional cube
Tangible assets - Correct Answer stock in a corporation"
"Which principle works in conjunction with the principle of change, but quantifies the rate and character of the change involved? Inclining and Declining Periods. Externalities Balance Inclining and Declining Periods.
Anticipation - Correct Answer Inclining and Declining Periods."
"The market for real estate tends to be __________. National Regional Local
State wide - Correct Answer Local"
"Which of these is an example of the principle of regression? Good quality home in a neighborhood of good quality homes. Good quality home in a neighborhood of fair quality homes. Fair quality home in a neighborhood of good quality homes.
Fair quality home in a neighborhood of fair quality homes. - Correct Answer Good quality home in a
neighborhood of fair quality homes." "USPAP says that ______________ is a fact, or an estimate of fact. Cost Value Highest best use
An appraiser's opinion - Correct Answer Cost"
"The middle number found by arranging the numerical data sequentially from highest to the lowest or vice-versa is the _____________. Median Mean
"The difference between the highest sale price and the lowest sale price for those sales being analyzed is the ____________. Mean Median Mode
Range - Correct Answer Range"
"USPAP says that "appraisers are cautioned to identify the exact definition of market value and ____________________" Its authority. Its scope its provenance
Date of publication - Correct Answer Its authority."
"Which of these designations would indicate that a property is in a Special Flood Hazard area? B C X
A - Correct Answer A"
"What type of value typically does not include the value for the land? Book value Insurance Value. Going concern value
Market value - Correct Answer Insurance Value."
"In Fannie Mae's definition of value is says that it assumes "buyer and seller are ________________ motivated." Strongly Somewhat Typically
Causally - Correct Answer Typically"
“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 highest and best use determination for the subject
property." "Which is NOT a type of framing? Balloon Post and Beam Platform
Mansard - Correct Answer Mansard"
"Supply _____________ demand. Equals Always exceeds Does not affect
Always chases - Correct Answer Always chases"
"The purchaser's motivation to purchase the item in question to satisfy a need is called _____________. Need Desire Yearning
Fulfillment - Correct Answer Desire"
"Part of the definition of Highest and Best Use is that is the "______________________ use...." Most common Reasonably probable Probable
Expected - Correct Answer Reasonably probable"
"Employing zero lot lines and attach the garage areas between two houses is called ___________ housing. Shared Semi-attached Uniplex
Townhouse - Correct Answer Uniplex"
"The cost of a given amenity does not guarantee the ___________ of that particular item. Value Desirability Utility
Contribution - Correct Answer Value"
"Sites may be analyzed using all these methods EXCEPT _______________. Price per square foot Price per acre Price per cubic foot
Price per front foot - Correct Answer Price per cubic foot"
"Who will ultimately determine what a given amenity will contribute to the overall property value? ________________. The neighborhood Sellers Market participants (buyers and sellers)
Balance All of these items Supply
Demand - Correct Answer All of these items"
"Which highest and best use criterion would require an appraiser to consider whether the site is in a flood zone? Financially feasible Physically possible. Governmentally approved
Maximally productive - Correct Answer Physically possible."
"Which highest and best use criterion would require an appraiser to consider CC&Rs?. Physically possible Legally permissible Financially feasible
Maximally productive - Correct Answer Legally permissible"
"The relationship between the supply and the demand for a site's particular highest and best use is a part of the analysis of ___________________. Legally Permissible Physically Possible Maximally Productive
Financial Feasibility - Correct Answer Financial Feasibility"
"Going concern value includes an operating business with ______________________ assets. Tangible Intangible Unattached
Both tangible and intangible - Correct Answer Both tangible and intangible"
"Another name for Sole Ownership is _________________. Unrestricted ownership Tenancy in Common Ownership in Severalty
REIT - Correct Answer Ownership in Severalty"
"The market value of a property is $350,000 and the loan value is $262,500. What is the loan-to-value ratio? 70% 75% 78%
80% - Correct Answer 75%"
"The market value of a property is $300,000 and the loan-to-value ratio is 80%. What is the loan value for this property? $60, $180, $200,
$240,000 - Correct Answer $240,000"
"A community's total employment is 77,700. The number of total core industry employees is 55,500. If the core industry adds 850 more jobs, how many additional jobs will be generated in the community? 300 340 440
550 - Correct Answer 340"
"Eminent domain is the right of the government to take private property, for public good, with __________________. Just compensation Judicial proceedings A writ of Habeas Corpus
Prior notice - Correct Answer Just compensation"
"Foundations are placed on top of __________ and serve to support the house. Headers Footers Sills
Footings - Correct Answer Footings"
"Which highest and best use criterion would require an appraiser to consider the topography of the site? Legally permissible Physically possible Socially acceptable
Financially feasible - Correct Answer Physically possible"
"Part of the definition of Highest and Best Use is that it is "Physically _______________..." Possible Permissible Feasible
Productive - Correct Answer Possible"
"The legally and physically possible use which will yield the highest probable return on value in the reasonably foreseeable future, is the_______________ Use. Maximum Consistent
Change Increasing Decreasing and Returns Anticipation
Competition - Correct Answer Change"
"Which type of system acts as both a heating system and air conditioning system? Dual Heat pump Solar PV
Radiant - Correct Answer Heat Pump"
"A community's total employment is 77,700. The number of total core industry employees is 55,500. What is the base core multiplier?
1.7 - Correct Answer 1.4"
"Market value is generally considered equivalent to ___________________. Leased Fee Value Value in Exchange Fee Simple Value
Going Concern Value - Correct Answer Value in Exchange"
"The highest and best form of ownership one can have in real estate is ________________. Free Simple Warranteed Fee simple
Leased Fee - Correct Answer Fee simple"
"Which of these would NOT be considered a special purpose property? Church Cemetery 6 story cooperative apartment building
Assisted living center - Correct Answer 6 story cooperative apartment building"
"A municipal building or a church are considered to be _______________. Outliers Specific use properties Special Purpose properties
Non-profit agencies - Correct Answer Special Purpose properties"
"Fannie Mae will only purchase or securitize a mortgage that represents the highest and best use ______________________.
Of the improvements Of the site and improvements Of the site as improved
Of the improvements as repaired - Correct Answer Of the site as improved"
"When the intended use of the appraisal is for a mortgage finance transaction, the assignment normally involves an opinion of _______________ Value. Market Mortgage Investment
Replacement - Correct Answer Market"
"Supply usually __________ the demand for a commodity or property. Leads Lags behind Is unaffected
Doubles - Correct Answer Lags behind"
"A _______________ neighborhood is said to be in conformity. Standardized Homogenous Heterogeneous
Typical - Correct Answer homogenous"
""A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural" defines ________. Market area District Neighborhood
Marketing area - Correct Answer District"
"In a Buyer's market, an appraiser is likely to find____________. Balance Increasing property values Increasing marketing times
Small inventories of available properties - Correct Answer Increasing marketing times"
"The client and/or the intended users can visualize the analysis process as well as follow the thought process that was used by the appraiser by viewing _________________. Statistics Charts and graphs Spread sheets
The Transmittal letter of the appraisal - Correct Answer Charts and graphs"
"Which of these is NOT one of the inherent characteristics of land? Immobility Homogeneity Indestructability
Heterogeneity - Correct Answer Homogeneity"
"The market is ___________ in a balanced situation. Usually Occasionally Never truly
Always - Correct Answer Never truly"
"If the individual property is one classified as a high-value property, the appraiser will identify the limited market for this type of property on the basis of the _____________ within the defined market area. Average property value Disposable income availability Number of expired listings
Median property value - Correct Answer Disposable income availability"
"In a market area, there were 256 single-family sales last year, and there were 64 expired listings that did not sell. What is the expiration ratio for this area? 10% 15% 20%
25% - Correct Answer 20%"
"An analysis that introduces _______________ for the study of the supply and demand for a particular property type or commodity is typically the analysis process that most appraisers perform for their assignments. Statistical formulas Data bifurcation Compound data
Market segmentation - Correct Answer Market segmentation"
"All _____________ appraisal assignments require an opinion of Highest and Best Use. Investment Value Market Value Assessed Value
Credible - Correct Answer Market Value"
"As part of data analysis, the information that is truly relevant to the assignment will then undergo ____________ and will be subjected to further testing and analysis by the appraiser.
Compilation Segmentation Scrutiny
Compilation - Correct Answer Segmentation"
"The elements of nature can affect value. This is called a(n) _____________ force. Physical Environmental Cyclical
Greenhouse - Correct Answer Environmental"
"Statistical analysis of data is a mechanical means to ascertain estimates using formulas specifically designed for the compilation of ___________________. Small amounts of data Small samples Matching pairs
Large amounts of data - Correct Answer Large amounts of data"
"The information extracted and used in the assignment will be compared to various verifiable data sources to ensure its ______________. Capability Utility Credibility
Applicability - Correct Answer Credibility"
"Deed restrictions are an example of __________ restrictions on land use. Public Private General
Government - Correct Answer Private"
"All of these are Governmental restrictions on land use EXCEPT ______________________. Taxation Police power Eminent domain
Deed restrictions - Correct Answer Deed restrictions"
"Restrictions on the use of a property in this market area may have an effect on the ______________ of the property. Utility Transferability scarcity
Obsolescence - Correct Answer Transferability"
Economic opportunity
A disequilibrium - Correct Answer A buyer's market."
"There are two or more owners of a property and upon the passing of one of the owners, that owner's share passes to his or her heirs. This type of ownership is _____________________. Tenants in Common Joint Tenancy Ownership in Severalty
Shared Tenancy - Correct Answer Tenants in Common"
"If there are more than enough homes available in a market to satisfy demand, what will happen to home prices? They will decrease. They will increase They will not change
They will increase in 6 months - Correct Answer They will decrease."
"Another name for Actual age is ___________________. Effective age Apparent age Comparative age
Chronological age - Correct Answer Chronological age"
"The ability of the public to be able to purchase a commodity or property is called ______________ purchasing power. Potential Economic Effective
Comparative - Correct Answer Effective"
"Many communities offer ________________ to rehabilitate a declining neighborhood. Incentives Encouragement Strict Building Codes
Free advertising - Correct Answer Incentives"
"Which of these is NOT one of the four agents of production? Land Building Codes Labor
Capital - Correct Answer Building Codes"
"The Growth Cycle of a neighborhood is characterized by ___________. Decreasing demand
Strong demand Decreasing prices
Equilibrium - Correct Answer Strong demand"
""A prediction of future market conditions based on comparison of a quantified estimate of future demand with a quantified estimate of future supply" is the definition of __________________. Fundamental analysis Inferred analysis Inferential Analysis
Economic analysis - Correct Answer Fundamental analysis"
"The length of time that a given structure will prove beneficial and contribute to the overall value of the property is its __________ life. Actual Chronological Physical
Economic - Correct Answer Economic"
"Rent controls and building codes are examples of ______________________ forces that affect value. Economic Regulatory Statutory
Governmental - Correct Answer Governmental"
"We generally say that equilibrium is achieved when ________________ for the product. Supply and demand support the market Demand is slightly more than supply Supply and demand support each other
Supply is slightly more than the demand - Correct Answer Supply is slightly more than the demand"
"_________________ analysis will relate to the client whether the market considers such a project worthwhile. Investment Critical Feasibility
Utilitatarian - Correct Answer Feasibility"
"_______________ analysis examines the present worth of a future benefit. Financial Targeted Internal
Investment - Correct Answer Investment"
