AG HBU Practice Test Section 1 Flashcards
Which item involves examining the demand for and supply of a property type and the geographic market area for that property type but does not focus on a specific property?
A. appraisal process
B. market study
C. marketability analysis
D. scientific method
B. market study
Which item involves examining the demand for and supply of a specific property and the geographic market area for that property?
A. appraisal process
B. market study
C. marketability analysis
D. scientific method
C. marketability analysis
Which item refers to developing an opinion of a property’s value?
A. appraisal
B. appraisal theory
C. market study
D. marketability analysis
A. appraisal
Which consideration is NOT used to determine the level of marketability analysis for an appraisal assignment?
A. complexity of the property
B. construction quality of the property
C. size of the property
D. stability of market conditions affecting the property
B. construction quality of the property
Which statement about the valuation process is correct?
A. A marketability analysis occurs after the highest and best use analysis.
B. Comparable sales are obtained before the highest and best use analysis.
C. Market analysis occurs after the comparable sales are obtained.
D. Market analysis occurs before or during the highest and best use analysis.
D. Market analysis occurs before or during the highest and best use analysis.
- What is the first step in the six-step process?
A. demand analysis
B. market study
C. property productivity analysis
D. supply analysis
C. property productivity analysis
Part 3, page 65
An analysis of a property’s linkages is performed in which step of the six-step process?
A. capture analysis
B. demand analysis
C. property productivity analysis
D. residual analysis
C. property productivity analysis
An appraiser who performs an inferred analysis uses
A. consumer attitude and preference surveys.
B. evidence of current and historical occupancy and leasing activity.
C. forecasts of future economic conditions.
D. forecasts of population, income, and/or employment.
B. evidence of current and historical occupancy and leasing activity.
An appraiser who performs a fundamental demand analysis uses
A. consumer attitude and preference surveys.
B. forecasts of population, income, and/or employment.
C. projections of future demand based solely on regression analysis.
D. trend analysis only to predict market occupancy or absorption.
B. forecasts of population, income, and/or employment.
An appraiser who uses historical data as well as forecasts for major variables is undertaking
A. fundamental demand analysis.
B. inferred analysis.
C. Level A analysis.
D. property productivity analysis.
A. fundamental demand analysis.
What are the four factors that create value in real estate?
A. buyers, sellers, users, prices
B. demand, supply, prices, absorption
C. market delineation, demand, supply, capture
D. utility, desire, effective buying power, scarcity
D. utility, desire, effective buying power, scarcity
Which item is most concerned with the location of a property’s primary competition?
A. capture analysis
B. competitive market area
C. market area
D. supply analysis
B. competitive market area
Which statement best describes capture analysis?
A. Capture analysis does NOT consider the results of property productivity analysis.
B. Capture analysis is concerned with the expected performance of the subject property.
C. Capture analysis is NOT concerned with the subject property’s stabilized occupancy.
D. Capture analysis is only concerned with the performance of the subject property.
B. Capture analysis is concerned with the expected performance of the subject property.
Which of the following statements is NOT true about stabilized occupancy?
A. Stabilized occupancy is always linked to a specific time conclusion.
B. Stabilized occupancy is linked to a market rent presumption.
C. Stabilized occupancy is unrelated to local market conditions.
D. Stabilized occupancy relates to a specific property.
C. Stabilized occupancy is unrelated to local market conditions.
Part 3, page 74
- Given the following graph, what would you expect to happen if demand increases?
A. Demand curve will shift to the left, increasing the price, which should restrain development of more supply.
B. Demand curve will shift to the right, increasing the price, which should stimulate more supply.
C. Supply curve will shift to the left, and the price will increase, which should limit increases in demand.
D. Supply curve will shift to the right, and price will decrease, which should accommodate the increased demand.
B. Demand curve will shift to the right, increasing the price, which should stimulate more supply.
