Review Multiple Choice Question Flashcards
mixed chapter
Base on the definition of “real estate” and “real property”, in this lesson, which of the following is an example of real estate”
Base on the definition of “real estate” and “real property”, in this lesson, which of the following is an example of real estate”
(3) Alex has bought a house and his extended family.
Which of the following BEST describes who an appraiser may owe obligations to?
Which of the following BEST describes who an appraiser may owe obligations to?
(4) An appraiser may owe obligations to all of the above groups.
Research is specified as one of the First Principles of Value. This helps ensure a disciplined approach to an appraisal assignment. Which of the following statements regarding data collection and analysis is TRUE?
(4) Market data grids and adjustment grids help in organizing data into useful, measurable categories.
Which of the following is NOT a characteristic of Highest and Best Use analysis?
Which of the following is NOT a characteristic of Highest and Best Use analysis?
(1) Determines the final opinion value.
The interaction of which of the following market statistics can help measure trend in real estate market?
The interaction of which of the following market statistics can help measure trend in real estate market?
(1) Vacancy rate and rental rate
(2) Capitalization rates and vacancy rates
(3) Changes in supply and home price changes
(4) All of the above.
-answer no.4-
Which of the following statements is TRUE regarding the First Principle of Value and Property Analysis?
Which of the following statements is TRUE regarding the First Principle of Value and Property Analysis?
(1) An appraiser must understand the physical attributes of the property, including size, shape, and utility improvements.
(2) An appraiser must understand the locational attributes of the property, including its socio-economic and geographic context
(3) An appraiser must research the facts of the subject property in order to produce a credible opinion of its value.
(4) All of the above are TRUE.
==answer no.4====
What should Dave’s Appraisal report include if the highest and best use of the subject’s land ad though vacant is different that the highest and best use of his property as improved?
(1) The report should include identification of each highest and best use separately
(2) The report should include a statement explaining that the highest and best use of the land as though vacant was determined under the theoretical presumption that the land is vacant and available for development.
(3) The report should include a statement that explains that the highest and best use of the property as improved was determined based on the continued economic viability of the property in its current state.
(4) All of the above statements should be included in the appraisal report.
===answer no.4====
Your assignment is to determine the demand for a proposed residential subdivision of 50 lots on the outskirts of your city. Which of the following correctly lists the steps in carrying out a six-step market analysis?
a six-step market analysis:
Property productivity analysis, market delineation, demand analysis and forecast, competitive supply analysis and forecast, supply and demand study, capture estimation.
A piece of land in Mississauga is improved with a single-family dwelling built in the 1950’s. Recent sales in the neighbourhood show that similar improved properties have a market value of $425,000. However, this part of the city in transition, with vacant properties rezoned to multi-family use selling for $530,000. Given changes to the OCP, you believe it is reasonably probable the subject may be rezoned to multi-family dwelling. Research with contractors shows the cost of demolishing the house and seeking rezoning will total $40,000. Based on this information, what is the highest and best use for this property?
The highest and best use involves demolishing the existing improvements and redeveloping the site to multi-family use.
The principle of ………….. holds that the value of a property tends to equal the cost of acquiring an equally desirable substitute property.
The principle of ………….. holds that the value of a property tends to equal the cost of acquiring an equally desirable substitute property.
answer : Substitution
Adjustments for real property rights conveyed reflect:
To the comparables to make them like the subject
Wendy owns a large parcel of land in south Garlin. The highest and best use of the property would be to develop it into a subdivision. There have been no sales of similar properties in this area in the recent past. Which of the following valuation techniques would she be best advised to use to value her property?
Valuation technique for subdivision property:
Yield Capitalization
Tina is considering buying a four acre parcel of land that she believes can be subdivided into ½ acre lots. She estimates a value of $175,000 per lot, once serviced and subdivided. She estimates servicing cost to be $280,000, overhead to be 25% of direct costs, and a reasonable allowance for holding cost and profit is 35% of net income. Based on the cost of development method, what is the indicated value of this undeveloped land ? (ignore any issues with respect to timing of cash flow discounting)
$682,500
Frank Murphy completed an appraisal report on a vacant parcel of land, which had a highest and best use of retail development. Five comparable were analyzed according to their sale price per square foot. However, one significantly larger than the subject and two were significantly smaller, so Frank adjusted these three comparables for size. Which for the following statements is TRUE?
The appraiser cannot adjust for size if price per square foot as the unit of comparison; this is double counting.
Which of the following statement FALSE?
Entrepreneurial profit is always included in published cost data
