Ch 1

Question 1

“The Bundle of Rights” or property interests are commonly considered to include:

Answer 1

The right to Sell the property
The right to Lease or rent the property
The right to Use or demolish the property
The right to Give it away
The right to Enter or leave the property
The right to Refuse any of these rights.
NOTE: Remember the acronym "SLUGER".

Question 2

“Credible assignment results require support, by xxx, to the degree necessary for the intended use.”1

Answer 2

relevant evidence and logic

Question 3

Real Property contains a mix of the four agents of production:

Answer 3

• Capital (buildings and equipment);
• Coordination (management);
• Labor (wages);
• Land
  land is always the last agent of production to be satisfied.

Question 4

We generally say that equilibrium is achieved when supply is x than the demand for the product. This is the way the market remains in a “check and balance” position.

Answer 4

slightly more

Question 5

All properties, neighborhoods, communities, and market areas proceed through the three phases of the life cycle. If and when there is an incentive to return this neighborhood to one for which there will be demand, the process of Revitalization, also called x, will cause the life cycle to begin anew for the affected market area.

Answer 5

Gentrification

Question 6

Formula Land Value via Surplus Productivity

Answer 6

Net Operating Income (NOI)
Minus Coordination (Management)
Minus Capital
Minus Labor
= Remaining NOI to Land
/ Land Capitalization Rate %
= Indicated Land Value $

Question 7

The appraiser x value the land under one use and the improvements under another use.
Supports what Theory?

Answer 7

cannot
Consistent-Use Theory

Question 8

x are the most restrictive of the restrictions in place for the land’s use.

Answer 8

Covenants