Res Market Anal and Highest and Best Use Ch 6 Final Quiz Flashcards
________ Land is capable of a separate or alternative use.
Excess
_______________ analysis examines the present worth of a future benefit.
Investment
_______________ Value is the price a property will sell for, if required to be sold very quickly.
Liquidation
________________ involves subdividing the larger market into a workable study area.
Market identification
________________ Value identifies a tenant’s interest in a lease.
Leasehold
_________________ analysis will relate to the client whether the market considers such a project worthwhile.
Feasibility
_________________ are the most restrictive of the restrictions in place for the land’s use.
Developer’s Covenants
_______________________ ownership is specifically for husband and wife.
Tenancy by the Entirety
“The geographic region from which a majority of demand comes and in which the majority of competition is located” is the definition of _________________.
Market Area
“A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises” is the definition of _____________________.
Neighborhood
“A neighborhood characterized by homogeneous land use, e.g., apartment, commercial, industrial, agricultural” defines ________.
District
“A prediction of future market conditions based on inferences drawn from general market information, published data, and historical trends in rents and absorption rates and occupancy for similar property types” is the definition of ______________.
Inferred Analysis
”A prediction of future market conditions based on comparison of a quantified estimate of future demand with a quantified estimate of future supply” is the definition of __________________.
Fundamental analysis
A ________ ampere service is the minimum standard today for structures that do not have electric heat or central air conditioning.
100
A _______________ neighborhood is said to be in conformity.
Homogenous
A _______________ usually produces general marketing information for a geographic area.
Market study
A broad-based analysis involves the study of the supply and/or demand for a particular type of property or commodity within a particular service area or community. There is not a specific property or location involved in this type of analysis, which is called a ____________ Analysis.
Market
A change in population density in a market would be considered a(n) ________________ force affecting values.
Social
A community’s long range plan is called the ____________.
Master Plan
A community’s total employment is 58,240. The number of total core industry employees is 36,400. If the core industry adds 600 more jobs, how many additional jobs will be generated in the community?
360 (58,240 divided by 36,400 = 1.6. 600 times 0.6 = 360)
A community’s total employment is 58,240. The number of total core industry employees is 36,400. What is the base core multiplier?
1.6 (58,240 divided by 36,400 = 1.6)
A community’s total employment is 77,700. The number of total core industry employees is 55,500. For every 10 jobs added in the core industry, how many additional jobs will be generated in the community?
4(77,700 divided by 55,500 = 1.4)
A community’s total employment is 77,700. The number of total core industry employees is 55,500. If the core industry adds 850 more jobs, how many additional jobs will be generated in the community?
340 (77,700 divided by 55,500 = 1.4. 850 times 0.4 = 340)
A community’s total employment is 77,700. The number of total core industry employees is 55,500. What is the base core multiplier?
1.4 (77,700 divided by 55,500 = 1.4)
A comparable property’s room count would be considered what type of data?
Specific
A corporation or trust that combines the capital of many investors to acquire or provide financing for all forms of real property is called a(n) __________________________.
Real Estate Investment Trust.
A loan is $180,000 and the loan-to-value ratio is 90%. What is the Market Value for this property?
$200,000.(100 times 180,000 divided by 90)
A market is defined as a place where __________ are exchanged.
Goods and services
A Mill Rate is equal to so much per ______________ of value.
1000
A municipal building or a church are considered to be _______________.
Special Purpose properties.
A neighborhood where the most likely buyer for properties will be investors is an indication that the neighborhood is in the ___________ phase of its life cycle.
Decline
A property suffers from functional obsolescence because it has an outdated kitchen. Installation of a modern kitchen would cost $20,000 and would increase the value of the property by $15,000. This functional obsolescence is ______________________.
Incurable
A property suffers from functional obsolescence because it lacks air conditioning. Installation of air conditioning would cost $15,000 and would increase the value of the property by $20,000. This functional obsolescence is _________________.
Curable
A property’s present value is directly related to the perceived benefits to be received in the future. This is the Principle of _______________.
Anticipation
A property’s value is directly related to the ___________ for that type of property.
Demand
A residential property is currently zoned for residential use, but its highest and best use is expected to change to Light industrial use within the next 2-4 years. The subject property’s current use is considered ___________________.
Interim Use.
A restaurant was established in 1998. The local municipality rezoned the property in 2005 to permit only residential uses. The restaurant use is permitted to continue its operations. What is this called?
Legally nonconforming use.
A single family residence is situated on a 1 acre site, in an area where ½ acre sites are common. The home is in the center of the property, and it is not possible to subdivide off a ½ acre site. This is an example of _____________ land.
Surplus
A single-family homesite is worth $50,000. The owner plans to build a 3,000 square foot home on it, at a cost of $400,000. When it is completed, the property will be worth $425,000. What is the problem here?
It is not financially feasible.
A single-family residence is located in a commercially-zoned area. Residential sale prices in the area range from $90-100 per square foot. The residence could be converted to offices at a cost of $40 per square foot. Office space in this area is selling at $110-120 per square foot. What is the highest and best use of this property?
Continue use as a single-family home.
A two-story home measures 28 feet by 48 feet on the exterior. There is an open two-story foyer area which measures 11 feet by 14 feet. What is GLA of this home?
2534 (28 times 48 times 2 stories = 2,688. 11 times 14 = 154. 2,688 minus 154 = 2,534 GLA)
All of these are external factors that could affect the value of a property
Zoning changes, Quality of a school system, Police protection and crime rates
An analysis that introduces _______________ for the study of the supply and demand for a particular property type or commodity is typically the analysis process that most appraisers perform for their assignments.
Market segmentation
An announcement of the expansion of an industrial plant that is the region’s major employer would likely result in ___________________ .
Increasing property values
An Apartment building has rents of $800, $835, $850, $850, and $875 per month. What is the Mean of the rents?
$842(800 plus 835 plus 850 plus 850 plus 875 = 4,210 divided by 5 = 4,210)
An exterior inspection of a single story residential property indicates a GLA of 1,600 square feet. An interior inspection reveals an entry foyer of 410 square feet and a 10 foot by 12 foot unfinished storage area not accessible from the interior of the house. The GLA of the home is_____________.
1,480(10 times 12 = 120, 1600 minus 120 = 1,480)
An investor considers building an investment property and the total cost would be $550,000. The investor expects a 15% return on his investment. For this project to be financially feasible, it would have to be worth at least __________ upon completion.
632500 (550,000 plus 15%)
An opinion of value can be directly related to the ________________ of the rights of ownership for the individual property.
Presence or absence
Another name for a market segment is a ____________________.
Submarket
Another name for Assessed Value is ______________ Value.
Ad Valorem
Another name for Mean is ________________.
Average
Another name for Renewal Period is _____________ Period.
Revitalization
Another name for Sole Ownership is _________________.
Ownership in Severalty
Appraisers must determine the appropriate level of analysis required for the assignment. This is known as ______________.
Scope of work
Appraisers must develop an opinion of the property’s highest and best use, first as though the land ___________, and then as the land is _____________improved.
Were vacant, actually
Appraisersforum.com is an online __________ for appraisers.
Discussion board
Building code enforcement falls under the category of ________________.
Police Power
Changes in the demand for differing housing styles or housing locations can be the cause of _____________ obsolescence.
Functional or external
Competition in the market place is encouraged by ______________.
Profit
Competition is good for the market –
Up to a certain point.
Data that are readily available from public sources such as the local chamber of commerce, the community city hall, or the area public library is known as __________ data.
Secondary
Data that describe the local market area or neighborhood of the subject property are called ___________ data.
General
Data that is collected by the appraiser from the market place is known as _____________ data.
Primary
Data which pertain to the subject and comparable properties and also describe individual property values are called ___________ data.
Specific
Deed restrictions are an example of __________ restrictions on land use.
Private
Determination of the highest and best use of the property needs to be _________________________ .
As of an effective date
Eminent domain is the right of the government to take private property, for public good, with __________________.
Just compensation
Fannie Mae will only purchase or securitize a mortgage that represents the highest and best use ______________________.
Of the site as improved
Foundations are placed on top of __________ and serve to support the house.
Footings
Generally, which changes more slowly in a real estate market?
Supply
If the four agents of production are out of balance a property is __________________________.
Over-improved or under-improved
If the individual property is one classified as a high-value property, the appraiser will identify the limited market for this type of property on the basis of the _____________ within the defined market area.
Disposable income availability
If there is an oversupply of homes available in a market to satisfy demand, this is known as _________________.
A buyer’s market.
In a Buyer’s market, an appraiser is likely to find____________.
Increasing marketing times