Chapter 1

Question 1

• A group of complementary land uses
  -a congruous grouping of inhabitants, buildings or business enterprises

Answer 1

Neighborhood

Question 2

-Geographic region
-from which majority of demand comes
-majority of competition is located.

Answer 2

Market area

Question 3

Depending on the market, a market area may be further subdivided into components such as

Answer 3

-primary
-secondary
-tertiary market areas

Question 4

A neighborhood characterized by homogeneous land use

Answer 4

District

Question 5

The separation and identification of the parts of the whole

Answer 5

Analysis

Question 6

-people will purchase real estate
-based upon the assumption
-they will receive certain benefits
-from the ownership of that property

Answer 6

Anticipation

Question 7

The principle of anticipation is very often associated with

Answer 7

the income approach

Question 8

The principle of anticipation is also related to the principles of:

Answer 8

-supply and demand
-competition
-change

Question 9

When supply and demand for a product
or a specific type of property
are in harmony
it is said that _______ exists

Answer 9

Balanced situation

Question 10

The principle of balance
is closely related to
the following principles

Answer 10

-Four agents of production
-Conformity
-contribution
-surplus productivity

Question 11

The principle of ______ emphatically states that nothing ever remains “static” or in balance.

Answer 11

Change

Question 12

Because of the principle of _____, the appraiser’s opinion of value is always “as of” a specific date.

Answer 12

Change

Question 13

The principle of change is related to the following principles:

Answer 13

Anticipation
Supply and demand
Inclining and declining periods

Question 14

The public, in terms of home ownership, tends to locate in areas that will

Answer 14

insulate them from adverse conditions

Question 15

When protection from detrimental conditions and a pleasant mix of property styles and sizes are present, property values are enhanced. This homogenous neighborhood is said to be

Answer 15

in conformity.

Question 16

the principle of conformity is related to the following principles:

Answer 16

Balance
Progression and regression

Question 17

Contribution

_______will ultimately determine what a given amenity will contribute to the overall property value.

Answer 17

Market participants (buyers and sellers)

Question 18

What principle is most often associated with the Sales Comparison approach to value?

Answer 18

Contribution

Question 19

The principle of ________ takes into consideration the external factors that relate to a given proeprty.

Answer 19

Externalities

Question 20

What are the four agents of Production

Answer 20

-Land
-Labor
-Capital
-Coordination

Question 21

Real Property contains a mix of the _____________

Answer 21

Four agents of production

Question 22

Inclining and declining periods

The four stages of the life cycle are?

Answer 22

-Growth
-stability
-decline
-revitalization

Question 23

The process of Revitalization is also called?

Answer 23

Gentrification

Question 24

When an appraiser is analyzing the subject property’s market area, which question is most likely to be asked?

Answer 24

What defines the boundaries of the subject property’s neighborhood?

Question 25

A propety owner constructs a six-car garage at a cost of $80,000. It only adds $40,0000 in value to the property. What economic principle does this best demonstrate?

Answer 25

Contribution

Question 26

The value of a fireplace in a single-family home is determined by:

Answer 26

what a buyer perceives as its worth, and how much he will pay for it

Question 27

Which of these can increase conformity in a neighborhood?

-Covenants, Conditions, and Restrictions
-Zoning ordinances
-Ordnances specifying minimum site sizes and setbacks
-all of these

Answer 27

All of these