final exam Flashcards
1
Q
What entity is considered the authority on determining when the U.S. economy is in a recession?
A
National Bureau of Economic Research
2
Q
At which stage of the real estate cycle does the federal government often lower interest rates to maintain construction levels?
A
Recession
3
Q
If a knowledgeable buyer purchased a property from a seller who is significantly less knowledgeable, this is an example of:
A
Information asymmetry
4
Q
What is a major cause of inefficient markets, especially relating to real estate?
A
Information asymmetry
5
Q
The four stages of the real estate cycle are typically:
A
Expansion, contraction, recession, recovery
6
Q
What could be an early indicator of a declining market?
A
Rising vacancy rates
7
Q
What type of corporation invests in real estate, pays no corporate taxes, and distributes 90% of the income to investors?
A
Real Estate Investment Trust
8
Q
T/F Buyers and sellers of real property are usually equally knowledgeable about the subject property and local market conditions.
A
FALSE
9
Q
What is one of the reasons why real estate is an inefficient market?
A
Properties are not easily or quickly produced
10
Q
REAL ESTATE IS AN EFFICIENT/INEFFICIENT MARKET, WHILE STOCKS ARE AN _____ MARKET
A
INEFFICIENT, EFFICIENT
11
Q
Data that relates directly to the subject property is identified as:
A
Specific data
12
Q
A vacant property is zoned for apartments. Because it is situated adjacent to an operating sanitary landfill, the property has remained undeveloped for many years. This is an example of a/an _____________ force affecting real estate.
A
ENVIRONMENTAL
13
Q
A local municipality issues a moratorium on building permits because of concerns that local sewage systems are draining into a local waterway. This is an example of a/an _____________ force affecting real estate.
A
GOVERNMENTAL
14
Q
At which stage in the real estate cycle does competition among sellers increase, resulting in a decrease in profits?
A
Contraction
15
Q
What type of analysis defines the geographic demand for a specific property?
A
Market delineation
16
Q
At which stage of the real estate cycle does the federal government often lower interest rates to maintain construction levels?
A
Recession
17
Q
What is the term for the process that defines and subdivides a large homogenous market based on location, demographics, and consumer behavior?
A
Market segmentation
18
Q
The four agents of production
A
LAND, LABOR, CAPITAL, entrepreneurial coordination
19
Q
The “four great forces” that affect real property value are
A
governmental, environmental, economic, and social
20
Q
Before researching the market, an appraiser must
A
Identify the subject’s market area
21
Q
What model can be used to explain growth patterns around major employment centers?
A
Concentric Ring Growth Pattern
22
Q
Market segmentation defines and subdivides a large homogenous market into segments based on
A
Consumer behavior, DEMOGRAPHICS, LOCATION
23
Q
An economic theory where value is created by expectations of future benefits such as income, appreciation, tax benefits, etc.
A
Anticipation
24
Q
An economic principle; the condition caused when values are proportional by various factors
A
Balance
25
An economic principle that demonstrates new social patterns, technology, employment, transportation, and other factors create new demands for real estate.
CHANGE
26
An economic principle stating that individuals and firms strive for a greater share of a market to sell or buy goods and services, each acting independently by offering the most favorable terms.
COMPETITION
27
An economic principle which states that property value is maximized when the characteristics of a property are in conformance with market expectations and demands.
CONFORMITY
28
_______ holds that the value of a component of a property is based on its contribution to the value of the whole property. This principle is also known as marginal productivity.
CONTRIBUTION
29
An economic principle pertaining to an item or event which is external to the boundaries of the property. It can have a positive or negative effect on the property. Many of the forces that affect or influence real estate values pertain to governmental, environmental, economic, and social factors.
EXTERNALITIES
30
Relates to information appropriate for many properties which includes all of the four forces (social, economic, environmental, and governmental).
GENERAL DATA
31
An economic principle that states a feature, repair, addition, etc. might increase or decrease real estate value. As such, the laws of increasing or decreasing returns states that beyond a certain point in time, the feature, repair, addition, etc. will either add or decrease value.
INCREASING/DECREASING RETURNS
32
The classification and study of current supply and demand conditions in a particular area for a specific type of property.
MARKET ANALYSIS-the market analysis develops the supportable basis for determining highest and best use, vacant or improved.
33
An economic principle; the income lost by not choosing an alternative.
OPPORTUNITY COST
34
Data that has been compiled for a specific purpose and has not been collated or merged with others.
PRIMARY DATA-Primary data relates to specific markets in which the property is located and may include specific sales information, surveys of buyers' preferences, absorption statistics for the assignment, and competitive inventory surveys.
35
The amount of money an investor retains after debt is paid. Examples include before-tax cash flow or an equity dividend.
RESIDUAL INCOME
36
Encompasses publications and other sources of information that were prepared by someone other than the appraiser.
SECONDARY DATA-Sources of secondary data may include government reports, Chamber of Commerce publications, census reports, rent studies, published sales data services, etc.
37
Relates to information used directly in the analysis of the subject property and while encompassing the comparables used in the valuation process.
SPECIFIC DATA
38
An economic principle that is the replacement of one thing with another.
SUBSTITUTION
39
Entails examining and analyzing the current competitive properties and their characteristics based on economic, financial, location factors as well as site and building size, if appropriate.
SUPPLY ANALYSIS
40
An economic principle describing how values or prices are related to the number of goods made available [supply] and the number of goods people want [demand].
SUPPLY AND DEMAND
41
An economic principle; the net income that remains after the costs of labor, capital, and entrepreneur profit have been paid and which is attributable to the value of the land.
SURPLUS PRODUCTIVITY
42
The center of an urban area, typically zoned for various uses such as retail, office, and residential. Further, in some areas, transportation starts and ends in the CBD since it is the central location for employment.
Central Business District (CBD)
43
A non-residential property for use as office, hotel, or retail. Nearly all local governments require restrictions for commercial locations in conjunction with residential properties.
Commercial real estate
44
_________ is a common concept in economics, and gives rise to derived concepts such as consumer debt.
CONSUMPTION
45
Consumer debt that has been paid.
CONSUMER CREDIT
46
Consumer credit which is outstanding. In macroeconomic terms, it is debt which is used to fund consumption rather than investment.
CONSUMER DEBT
47
Event that occurs in a life cycle when an economy or area no longer can compete at a profitable level due to sale decreases resulting in decreased occupancy, absorption rates, and construction.
Decline, contraction, downturn, or recession
48
The desire for a specific good or service.
DEMAND
49
Demand analysis that includes the investigation and identification of the most probable user, including their preferences based on behavioral, motivational, and psychological factors.
DEMAND SEGMENTATION
50
The study of a population and its characteristics such as age, sex, familial status, occupation, etc.
DEMOGRAPHICS
51
The social science that studies the production, distribution, and consumption of goods and services.
ECONOMICS
52
Characterized by goods or services that are easily produced and readily transferable, with a large volume of knowledgeable buyers and sellers.
EFFICIENT MARKET
53
Relates to information appropriate for many properties; includes all of the four forces (social, economic, environmental, and governmental).
GENERAL DATA
54
The preliminary stage in a life cycle that refers to increased development of an area.
GROWTH OR EXPANSION
55
A market characterized by an uneven flow of information, with goods and services that are not easily produced or transferable.
Inefficient market
56
During the negotiation process, only one party is privy to important information that may affect the outcome of the transaction.
Information asymmetry-Information asymmetry causes inefficient markets, since all the market participants do not have access to the information needed for their decision making processes.
57
Real estate is purchased with the expectation of attaining a return on investment, with the intention of using it as an investment vehicle and/or a consumer good.
Investment and Consumer Goods
58
A partnership with at least one passive partner whose liability is limited to the amount invested and at least one partner whose liability extends beyond the monetary investment.
Limited partnership (LP)
59
Define the primary and secondary market areas and include the type of tenants or clientele buildings might attract and their location, as well as time-distance relationship to nearby complementary services such as restaurants, schools, voting districts, etc. as compared to the competition.
Market area delineation concepts
60
Defines the geographic demand for a specific property.
Market delineation
61
Someone involved in a real estate transaction who receives and possibly acts upon all relevant information.
Market participant
62
Defines and subdivides a large homogenous market into segments based on location, demographics, and consumer behavior.
Market segmentation
63
A tax designation for a corporation investing in real estate, reducing or eliminating corporate income taxes.
Real estate investment trust (REIT)-In return, REITs require distribution of 90% income, which may be taxable, into the hands of the investors.
64
A succession of submarkets with various desires and needs for each market participant that change autonomously of one another based on a group of complementary land uses that may be divided by natural barriers, political boundaries, districts, income levels of inhabitants, or streets.
Real estate market
65
The general contraction of the business cycle in economics during a sustained period of time. This occurrence is typically over two consecutive quarters of negative GDP growth.
Recession
66
Occurs in a life cycle after a decline and before the growth cycle occurs again.
Revitalization, upturn, or recovery-Revitalization may occur due to rehabilitation and/or renovation as an area undergoes gentrification.
67
Stability, slowdown, or downturn that follows the growth stage within a life cycle, especially when an area grows at a slower rate.
Stabilization
68
Buying and selling real estate is much more expensive than most types of transactions. These costs include financing, commissions, closing costs, title insurance, moving costs, legal fees, land transfer taxes, deed registration fees, etc.
Transaction Costs
69
The principle of anticipation applies only in the appraisal of income-producing properties.
False
70
The principle which holds that the net income attributable to the land after the costs of labor, capital, and entrepreneurial profit have been paid is:
Surplus productivity
71
When do improvements add the most value to a property?
When the property is used for its highest and best use
72
A _________ includes supply and demand analysis along with the collection of market data, analyses, and recommendations.
Market analysis
73
An apartment building owner wishes to construct a new garage building for his tenants, at a cost of $80,000. The principle of contribution holds that the value of this new garage is:
Based on its contributing value to the total property
74
What is achieved when numerous factors exert proportional influence on value?
Balance
75
What is the loss of income by not choosing an alternative called?
Opportunity Cost
76
Which phrase best describes equilibrium price?
The market price that is set by interaction of supply and demand
77
What type of GIS application is classified into three functionality categories: GIS Viewer, GIS Editor, and GIS Analyst?
Desktop GIS
78
Data that was prepared by someone other than the appraiser would be considered _______________ data.
Secondary
79
What type of data directly relates to the subject property?
Specific data
80
What best allows the appraiser to observe the market area that influences the value of the subject property?
A visual inspection
81
A particular GIS program has a representation of buildings as rectangles, with two attached fields that detail the building owner and the year built. This would be considered a ____________ representation.
Vector
82
Field notes and building measurements that the appraiser took during the physical inspection of the subject property would be considered ___________ data.
Primary
83
____________ are typically used to represent variables that are continuous over space, such as terrain elevations or land cover.
Rasters
84
The principle of ___________ states that a prudent purchaser will pay no more for a property than he or she would pay for a similar or comparable property.
Substitution
85
In a competitive market, ________ will function to equalize the quantity demanded by consumers and the quantity supplied by producers.
Price
86
The total demand for a type of real estate offered on the open market by all economic agents resident in an economy that may be leased or sold during a certain period of time.
Absorption
87
Professional management of real estate to meet specified asset goals for the advantage of the investors. Investors may be insurance companies, lenders, pension funds, corporations, or private investors.
Asset manager
88
A ___________ is defined as the estimated percentage of the total potential market for a specific type of property.
Capture rate
89
A person or company who typically purchases a tract of vacant land and develops the real estate with improvements to yield a profit.
Developer
90
A part of real estate development wherein vacant land is purchased after a design conception, financed, and sold.
Development process
91
A survey of the industries and businesses that generate employment and income in a community as well as the rate of population growth and levels of income, both of which are functions of employment.
Economic base analysis- is used to forecast the level and composition of future economic activity. Specifically, the relationship between basic employment (which brings income into a community) and nonbasic employment (which provides services to workers in the basic employment sector) is studied to predict population, income, or other variables that affect real estate values or land utilization.1
92
An analysis or study involving examination of geographic locations for a real estate development project as well as a cost-versus-value analysis.
Feasibility study
93
The study of capital and income that characterizes the financial services industries as part of the SIC/NAIS breakdown of types of industry: finance, Insurance, and real estate. The SIC was replaced by the North American (Canada, USA, Mexico) Industry Classification System (NAICS) in 1997.
FIRE (finance, insurance, real estate)
94
A method that compares the subject share of the market, adjusts the subject to the competition using quantifiable rating techniques, calculates the subject historical capture rate, and other factors.
Fundamental capture method
95
In retailing, general merchandise such as apparel, furniture, etc.
General merchandise, apparel, furniture, and other (GAFO)
96
The study of economic and market trends, earnings calculations, and various other market indicators to determine investment strategies.
Investment analysis
97
A _____________ or study consists of interviews, comprehensive data, maps, tables, etc. and demonstrates the marketability of a specific property or the possible future of an existing property.
Marketability analysis
98
A calculation derived by adding the sum of data and dividing by the number of items.
Mean
99
Describes the differences within a population in a statistical calculation.
Measure of dispersion
100
The middle number within a series of numbers arranged by sequence in statistical analysis.
Median
101
The number that occurs most frequently within statistical analysis.
Mode
102
A smooth symmetrical bell-shaped curve. The normal distribution can describe many populations.
Normal distribution
103
The standard used by Federal statistical agencies to classify businesses for collecting, analyzing, and publishing statistical data related to the U.S. business economy.
North American Industry Classification System (NAICS)
104
The square feet leased in a specific geographic area over a fixed time period after calculating the deduction of space vacated in the same area during the same time period.
Net absorption
105
Growth of the population due to new employment in the area, new schools, shopping, or other characteristics consumers find desirable.
Population growth
106
The number of people in the primary and secondary trade areas from the most recent census information as well as projections from state, regional, and local government agencies.
Population trends
107
The difference between the smallest and the largest numbers within the list within statistical analysis.
Range
108
In statistics, a sample is a subset of data from a population or universe, as in a representative sample of the population.
Sample
109
The difference of the observations from the mean in a statistical analysis. According to the principles of statistics, 66% of observations are within one standard deviation from the mean, while 95% are within two standard deviations.
Standard deviation
110
A submarket is a specialized sub-section of a market based on the geographic or economic conditions. For example, a submarket is a secondary market compared to the primary market.
Submarket
111
What method compares the subject share of the market, adjusts the subject to the competition using quantifiable rating techniques, calculates the subject historical capture rate, and other factors?
Fundamental capture method
112
One measure of demand that is often used in the appraisal process is:
Capture rate
113
Consideration of rumors can be important in the valuation of real property.
True
114
According to NCREIF, additional knowledge leads to a better appraisal product, and also to:
Less liability
115
What tool on the Census Bureau’s website provides three different tables and thematic map functions?
American Fact Finder
116
Census data should be analyzed according to standard methodology.
False
117
According to NCREIF, what is an example of “hidden” space?
Sublet space
118
NCREIF is the:
National Council of Real Estate Investment Fiduciaries
119
According to NCREIF, what is the purpose of demand analysis?
Develop historical relationships as a basis for forecasting future demand
120
__________ statistics is the study of methods and tools for collecting data and mathematical models to describe and interpret data.
Descriptive
121
_______ statistics are the systems and techniques for making probability-based decisions and accurate predictions based on incomplete (sample) data.
Inferential
122
When choosing a trendline, the best fitting line will have an R-squared value that is closest to:
1
123
What kind of data is measured?
Quantitative data
124
A ____________ is a subset of the population.
Sample
125
What helps appraisers understand and apply accurate analysis in the evaluation of real estate?
Statistical techniques
126
How might an appraiser explain the extent to which individual data values have departed from the mean?
Measures of dispersion
127
An analysis to determine the best possible location for a condominium development, which includes a cost versus value analysis, would be called a:
Feasibility study
128
What method compares the subject share of the market, adjusts the subject to the competition using quantifiable rating techniques, calculates the subject historical capture rate, and other factors?
Fundamental capture method
129
Within the market delineation process, the appraiser identifies:
Competing and complementary properties
130
Experimental tests of the theories by several independent parties are conducted to ensure validity of the first three steps of the scientific method (observation, formulation, prediction).
Analysis
131
Consumers are interviewed based on their opinion or attitudes for a certain characteristic of a property to determine demand.
Attitudinal surveys
132
The motivation of an individual, group of persons, or business entity involving real estate.
Desire
133
The application of mathematical and statistical techniques to economic data and problems.
Econometrics
134
A theory that explains phenomena in the scientific method.
Formulation
135
A fundamental analysis forecasts demand based on specific information within the subject market. For instance, the appraiser utilizes capitalization rates for specific types of properties within the subject market area to forecast the estimated value of the subject. This analysis relies on the appraiser’s problem-specific data searches, interviews, and surveys; also known as primary data.
Fundamental analysis
136
A model within market delineation that predicts and describes behaviors that imitate gravitational interaction such as public transportation or real estate demand.
Gravity models
137
The inferred analysis, often referred to as a trend analysis, is a technical analysis utilized to forecast changes in future value by analyzing historical information. An inferred analysis is not specific to a particular property or subject. It compares the subject to general market indicators such as comparable property data, secondary data surveys and forecasts, the subject’s historical performance, local economic analysis, and other factors.
Inferred Analysis
138
During the research phase of the market analysis, an appraiser determines the level of analysis appropriate for the appraisal. These levels are the inferred analysis and the fundamental analysis.
Levels of a market analysis
139
A branch of economics that deals with the performance, structure, and behavior of a national or regional economy as a whole. Macroeconomics is one of the two most general fields in economics (microeconomics is the other).
Macroeconomics
140
A principle of economics that studies individuals, households, businesses, and states to understand their decisions regarding use of their resources.
Microeconomics
141
A technique within market delineation that estimates a retail trade area based on location or trade area after an investigation of population, income, and socioeconomic status.
Nelson technique
142
A description of a group of phenomena in the scientific method.
Observation
143
A fact or occurrence that can be observed.
Phenomena
144
The use of the theory that predicts the existence of other phenomena, or that predicts quantitatively the results of new observations.
Prediction
145
The study of consumer behaviors within a market, segmenting by factors such as level of education, income, occupation, familial status, age, sex, race, and others.
Psychographics
146
A method that attempts to diminish the influence of bias by the appraiser when testing a theory (observation, formulation, prediction, and analysis).
Scientific method
147
A process used within most market/marketability analyses; steps include productivity analysis, market definition, demand analysis, supply analysis, comparison of supply and demand, and development of subject capture estimate.
Six-Step Process
148
A market analysis based on drive times, customer segments, and household incomes. This widely used technique for market delineation is used for many purposes including residential, retail, hotel/motel, and industrial analysis for customer loyalty programs, transportation models, proposed development, etc.
Spotting Technique
149
Which branch of economics studies individuals, households, and businesses to understand their decisions regarding use of resources?
Microeconomics
150
____________ is the study of consumer behaviors within a market, segmenting by factors such as level of education, income, occupation, familial status, age, sex, race, etc.
Psychographics
151
A(an) __________ is when consumers are interviewed about their preferences regarding certain characteristics in order to determine demand for a property.
Attitudinal survey
152
Which branch of economics deals with performance, structure, and behavior of the national or regional economy as a whole?
Macroeconomics
153
What type of market condition study analyzes supply and demand for a specific property type in a particular market, which helps determine the highest and best use of the property?
Market analysis
154
Why is a market analysis essential to an appraisal?
It incorporates primary and secondary data which is used in determining highest and best use.
155
__________ utilize a market analysis to understand the target market’s preferences for specific amenities.
Architects
156
__________ utilize a market analysis to determine if the location is appropriate for the project according to the needs of the community.
Developers
157
Why is the scientific method useful in the appraisal process?
Because it attempts to diminish bias
158
How might an appraiser guard against inaccurate data being used in a market analysis?
Verify data, to the extent it is possible
159
Which step in the scientific method involves experimental tests to ensure validity of the first three steps?
Analysis
160
The steps in the scientific method are:
Observation, formulation, prediction, analysis
161
Which technique estimates a retail trade area after an investigation of population, income, and socioeconomic status?
Nelson technique
162
An appraiser is performing a market analysis to determine if a new office building is needed in an area. The appraiser plots existing office buildings, delineates where workers live, and the current drive times to existing office buildings. This is an example of ____________.
Spotting technique
163
A ________________ studies supply and demand for a specific property in a specific market.
Market analysis
164
Which type of market analysis studies a specific macroeconomic market area and the supply and demand factors for a specific property type, while dividing employment into two categories: basic and nonbasic?
Economic Base Analysis
165
Examining and analyzing current competitive properties and their characteristics, as well as proposed or potential future development, is part of which step in the Six-Step Process?
Supply Analysis
166
Which step in the scientific method relates most closely to the research and analyses in an appraisal assignment?
Prediction
167
How many steps are in the scientific method?
Four
168
A highest and best use opinion is required in ____________ appraisals.
Market value
169
A convincing highest and best use conclusion is necessary for:
A credible opinion of market value
170
When analyzing legal permissibility, what should an appraiser consider?
Deed restrictions
171
The definition of highest and best use requires that the use be appropriately supported. What does this mean?
There is sufficient demand to ensure financial feasibility.
172
If you have a USPAP-related highest and best use question, which Standards Rule should you consult?
1-3
173
The use to which a property is put until the time it achieves its eventual highest and best use is ___________.
Interim use
174
What is a use that was legally established and maintained, and is permitted to continue even though it no longer conforms to its zoning classification?
Legal non-conforming use
175
What principle requires the land and improvements to be valued based on the same use?
Consistent use
176
Usually, the regulating municipality will permit a non-conforming use to continue, but will limit the owner’s ability to expand the use or to rebuild the structure if it is damaged or destroyed.
True
177
In an appraisal, why is it important to identify the likely motivation of a purchaser?
Owners/occupants typically pay more than investor purchasers
178
Which entity develops, interprets, and amends USPAP?
The Appraisal Standards Board (ASB)
179
When analyzing highest and best use, USPAP requires an appraiser to:
Consider reasonably probable modifications of land use regulations
180
When analyzing legal permissibility, which of the following should an appraiser consider?
Deed restrictions
181
A non-conforming single-family residence located in a commercially-zoned area would be considered an:
Under-improvement
182
A convincing highest and best use conclusion is necessary for:
A credible opinion of market value
183
When analyzing highest and best use, USPAP requires an appraiser to:
Consider reasonably probable modifications of land use regulations
184
A highest and best use opinion is required in ____________ appraisals.
Market value
185
In deciding which highest and best use test constraint to apply first, an appraiser may find it helpful t
Apply the more restrictive constraint first
186
When reporting an extraordinary assumption, the appraiser must state the use of the extraordinary assumption and ____________.
State that its use might have affected the assignment results
187
What happens to the value conclusion if an appraiser’s highest and best use analysis is inaccurate?
It is not credible or appropriate
188
When appraising a piece of commercial property, an appraiser is considering the quality of the road leading to the property. Which highest and best use test constraint is exemplified in this situation?
Physically possible
189
When appraising a piece of industrial property, an appraiser believes a property’s topography affects the types of buildings that can be placed on it. Which highest and best use test constraint is exemplified in this situation?
Physically possible
190
An appraiser is inspecting a parcel of commercially-zoned property in a rural location. The owner tells the appraiser that the property is perfect for a franchise fast-food operation. The appraiser notes that none of the surrounding uses is used for fast-food; in fact, most of the surrounding commercial properties are vacant. The few properties that are improved have small home occupations and craft stores. Which highest and best use test constraint is exemplified in this situation?
Financially feasible
191
An appraiser is considering the subject property’s deed restrictions when analyzing its highest and best use. Which highest and best use test constraint is being considered?
Legally permissible
192
An appraiser is analyzing an improved property and discovers that its existing use is “grandfathered.” Which highest and best use test constraint is being considered?
Legally permissible
193
What is the best way for an appraiser to determine if there is potential environmental contamination on a property?
A phase one environmental report
194
Which statement is TRUE regarding use of a discount rate when appraising raw land?
The discount rate should be reflective of a very high degree of risk.
195
Part of a property has been identified as a wetland. Development of this property will require filling in part of the wetland area. Which entity would issue a permit for this activity?
Army Corps of Engineers
196
A medical office building conforms to zoning; however, it is located in the middle of a single-family residential neighborhood. This would be considered a(an):
Single use
197
Why is salvage value becoming more important for appraisers?
The increased use of recycled materials in buildings
198
When an existing improvement no longer adds value to a property, an appraiser may need to consider_____________ when valuing the property.
Demolition cost
199
A parcel of land is purchased by a local municipality for hiking trails and wildlife habitat. This is an example of what type of value?
Public interest value
200
The value of a property based on its value for public good is referred to as:
Public interest value
201
If it is not physically possible to develop a property:
The highest and best use may be for the property to remain vacant
202
Which of these improved properties is LEAST likely to require a going-concern value as a component of an appraisal?
Single-family home
203
An appraiser is responsible under USPAP to:
Consider reasonably probable modifications of zoning
204
The value of a multi-family property is influenced by two factors – the owner’s desire to keep the property, and:
The tenant’s desire to pay rent
205
In most markets, multi-family investors are more likely to:
Purchase an existing building
206
When appraising small income properties that are managed by the owner, the income and expenses are often more of a reflection of the quality of the property than the quality of the management. T or F
False
207
____________ identifies the demand for the subject property as determined by the market participants and their desire for the property.
Market delineation
208
In a market value appraisal, the property ___________ valued under its interim use.
Should not be
209
As a(n) an example of the ______________ of the local jurisdiction, the zoning ordinance serves the public interest by eliminating incompatible land uses.
Police power
210
separates the market into different types of properties, such as residential, residential multi-family, or office.
Market segmentation
211
Which of these is a characteristic of a market segment?
Consistent within the segment
212
One who offers professional management of real estate to meet specified asset goals for the advantage of the investors is called a(n) ______________.
Asset manager
213
The two main categories of statistics are ____________statistics.
Descriptive and inferential
214
Level __ market analysis projects future growth.
C
215
A market analysis is essential to an appraiser because it incorporates the ______________ data which is used in determining the highest and best use of the property.
Primary and secondary
216
There is not one generally-accepted format or level of detail for a highest and best use section in an appraisal report. The level of information in the appraisal report is based on the needs of _______________.
Clients and intended users
217
Part of the definition of Highest and Best Use says that it is the “reasonably probable and ________ use……”
Legal
218
The ______________ is vital in determining the financial feasibility of a property.
Appraiser
219
Smaller properties, consisting of up to ten units, are typically purchased and sold based on _______________.
Gross Income Multipliers
220
Which is NOT one of the four great forces that affect property values?
External
221
Key attributes that affect the demand for a property are all of these EXCEPT ________________ .
New and proposed construction
222
All of these are types of Market Condition Studies, EXCEPT for ______________.
Feasibility Analysis
223
An appraiser is reviewing the property requirements and the required setbacks. Which highest and best use test constraint is being considered?
Legally permissible
224
_____________ statistics is the study of methods and tools for collecting data and mathematical models to describe and interpret data.
Descriptive
225
A subject's capture rate is calculated as a ___________.
Pro rata share
226
Which Principle is also known marginal productivity?
Contribution
227
___________ compiled the MARKET ANALYSIS GUIDELINES.
NCREIF
228
In an appraisal, in which step of the scientific method is the implementation of a plan to collect and analyze data which determines the approaches necessary?
Prediction
229
The ________________________ is the section of the valuation process that provides the data required to test the four criteria for highest and best use.
Six-Step Process
230
Every _____ years, the Economic Census publishes information on establishments that produce goods or perform services at national, state, county, and metropolitan levels.
5
231
Highest and best use is “Among all reasonable, alternative uses, the use that yields the highest __________ value.”
Present land
232
The study of consumer behaviors within a market, segmenting by factors such as level of education, income, occupation, familial status, age, sex, race, etc. is known as ______________.
Psychographics
233
The Census Bureau also administers myriad censuses and surveys every ___________ from which to collect data.
Year
234
Demolition illustrates the difference between Economic life and ___________ life.
Physical
235
In a normal distribution, __% of the observations will fall within two standard deviations of the mean.
95
236
Conformity is sometimes referred to as _______________ .
Homogeneity
237
A ________________ is a specialized sub-section of a market based on the geographic or economic conditions.
Submarket
238
Which step in the scientific method identifies a problem to be solved?
Observation
239
The most common measure of central tendency is the _________.
Mean
240
GIS usually provide two different possibilities to represent a geographic phenomenon: _________________________.
Rasters and vectors
241
_________________ are the only ways to get a true picture of a site's subsurface conditions.
Soil borings or soundings
242
All of these reasons could cause a property to become legally non-conforming, EXCEPT for _______________ .
Deed restrictions
243
The laws of increasing or decreasing returns states that beyond a certain point in time, the feature, repair, addition, etc. will _________________ value.
Either add or decrease
244
A trend analysis is also known as ____________ analysis?
Inferred
245
_________________ are the only ways to get a true picture of a site's subsurface conditions.
Soil borings or soundings
246
Every _____ years, the Economic Census publishes information on establishments that produce goods or perform services at national, state, county, and metropolitan levels.
5
247
Level __ market analysis projects future growth.
C
248
Nonbasic (or service) industries support ________ industries.
Basic
249
______________ measurement includes nominal data with values from the highest to the lowest.
Ordinal
250
A _________ distribution uses both qualitative and quantitative data placed in a table that summarizes groups of data and observations divided into specific classes and the number of occurrences in each class.
Frequency
251
A Level __ market analysis would be considered Inferred analysis.
A
252
An appraiser is investigating whether there is a Flood plain on or near the site. Which highest and best use test constraint is being considered?
Physically Possible
253
A fact or occurrence that can be observed is defined as _______________.
Phenomena
254
Demolition illustrates the difference between Economic life and ___________ life.
Physical
255
A subset of a population is a(n) _________.
Sample
256
If the data is describing a characteristic within a population, it is a _______________. (Chapter 3, Data Analysis)
Parameter
