Ch 4-5

Question 1

Once the highest and best use opinion has been developed for the property, the x phase of the appraisal assignment can end and the x phase – the actual valuation process – can begin.

Answer 1

judgment
execution

Question 2

When appraising a property for an opinion of market value, the appraiser should develop an opinion of the highest and best use of the xxx, and then xxx

Answer 2

site as vacant
as it is presently improved.

Question 3

The first step in developing an opinion of highest and best use for the land xxx and ready for its allowable highest and best use.

Answer 3

is to determine the value of the land as if it is vacant

Question 4

The first analysis is the x analysis of the relationship between the supply and the demand for a site’s particular highest and best use.

Answer 4

inferred

Question 5

a use that was lawfully established and maintained, but no longer conforms to the use regulations of the current zoning in the zone where it is located.”
defines

Answer 5

Legally Nonconforming Use

Question 6

A single family residential dwelling situated in an area that has been rezoned for commercial use typically represents an x.

Answer 6

under-improvement

Question 7

The following are examples of assignments whereby the client is not interested in the market value of the property and an opinion of x is not relevant to credible assignment results:

Answer 7

highest and best use

• Investment value
• Insurable value
• Liquidation value
• Book value
• Value in use

Question 8

Single-unit investors typically expect an eight percent return for their investment.
SFR NOI $10,080

4-plex NOI $17,280
The return on the investment for this type of property is typically ten percent.

Which is max productive?

Answer 8

$10,080
/ 0.08
= $126,000

$17,280
/ 0.10
= 172.800