Chapter 9 Quiz

Question 1

Combining two or more parcels together to form one larger parcel is known as:

Answer 1

Assemblage

Question 2

A property’s “highest and best use” refers to:

Answer 2

The type of construction that will result in the highest value for that property

Question 3

The overall relationship between supply and demand will ultimately affect:

Answer 3

Price

Question 4

All of the following will affect the supply of real estate, except:

Answer 4

Wont affect - Change in consumer tastes or preferences

Will affect - Availability of skilled labor, Availability of materials, Amount of land available for construction

Question 5

Which of the following events will cause demand to decrease?

Answer 5

Price increase

Question 6

Generally, when there are more buyers than current homes available for sale, prices will:

Answer 6

Increase

Question 7

All of the following are characteristics of real estate except:

Answer 7

Not - A property’s current zoning will never restrict the overall potential of that site
Characteristics - Adjacent properties may benefit from their relationship to one another, Real estate development is generally slow to respond to changes in supply and demand, Real estate is said to be heterogeneous

Question 8

The increase in value realized as a result of assemblage is known as:

Answer 8

Plottage

Question 9

Vacancy rate refers to:

Answer 9

The percentage of units vacant