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Residential Market Analysis and Highest & Best Use > Review Quiz > Flashcards

Review Quiz Flashcards

1
Q 
A comparable property's room count would be considered what type of data?
Specific
Numerical
General
Primary
A

Specific

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2
Q 
A \_\_\_\_\_\_\_\_ ampere service is the minimum standard today for structures that do not have electric heat or central air conditioning.
75
100
150
200
A

100

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3
Q 
A property with restaurants and retail shops on the lower level and apartments on levels above is called a(n) \_\_\_\_\_\_\_\_\_\_\_ property.
Alternate-use
Multi-Use
Conclomerate
Cooperative
A

Multi-Use

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4
Q 
Research into the number of actual sales that have occurred in the neighborhood during the previous 12 month period what kind of data?
Primary
General
Secondary
Personal
A

Primary

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5
Q 
What type of value typically does not include the value for the land?
Book value
Insurance Value.
Going concern value
Market value
A

Insurance Value

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6
Q 
The appraiser uses \_\_\_\_\_\_\_\_\_\_\_\_\_ data to identify trends in the marketplace.
General
Specific
Verified
Primary
A

General

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7
Q 
“A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises” is the definition of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Market area
Market
Neighborhood
District
A

Neighborhood

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8
Q 
The Principle of Substitution holds that an \_\_\_\_\_\_\_\_\_\_\_ buyer will not spend more for a property than the cost of acquiring a suitable substitute property. Principle of Substitution.
Informed
Typical
Motivated
Disinterested
A

Informed

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9
Q 
The principle of \_\_\_\_\_\_\_\_\_\_\_\_\_\_ works in conjunction with the four agents of production and the amount of income a property can produce.
Surplus Productivity
Contribution
Supply and Demand
Balance
A

Surplus Productivity

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10
Q 
Loan Value is usually a percentage of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Market value
Appraised Value
Appraised value or Market Value
Assessed value
A

Appraised value or market value

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11
Q 
A(n) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ is the analysis of a specific property type in a defined area and involves rate differentials measuring the absorption rates for a particular type of property in a given area.
Market study
Marketability study
Equilibrium study
Statistical study
A

Marketability study

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12
Q 
Fannie Mae will only purchase or securitize a mortgage that represents the highest and best use \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Of the improvements
Of the site and improvements
Of the site as improved
Of the improvements as repaired
A

Of the site as improved

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13
Q 
All of these are Governmental restrictions on land use EXCEPT \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Taxation
Police power
Eminent domain
Deed restrictions
A

deed resrtictions

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14
Q 
A neighborhood is characterized by \_\_\_\_\_\_\_\_\_\_\_\_\_ land uses; whereas a district is composed of \_\_\_\_\_\_\_\_\_ land uses.
Homogeneous, complementary
Complimentary, similar
homogeneous, heterogeneous
Complementary, homogeneous
A

complementary, homogeneous

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15
Q 
A \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ neighborhood is said to be in conformity.
Standardized
Homogenous
Heterogeneous
Typical
A

homogenous

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16
Q 
A loan is $180,000 and the loan-to-value ratio is 90%. What is the Market Value for this property?
$180,000
$200,000.
$210,000
$220,000
A

$200,00

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17
Q 
The market is too nebulous to analyze as a whole, so the appraiser must segment the market into \_\_\_\_\_\_\_\_\_\_\_\_\_\_ in order to look for trends.
Areas
Key words
Registers
Components
A

components

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18
Q 
The factors of \_\_\_\_\_\_\_\_\_\_\_\_\_\_ are the predominant forces to ultimately determine the value for housing in the marketplace.
Marketability and durability
Supply and demand
Cost and value
Substitution and change
A

supply and demand

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19
Q 
Part of the definition of Highest and Best Use is that it is the use that “results in the \_\_\_\_\_\_\_\_\_\_ value.”
Typical
Highest
Forecasted
Average
A

highest

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20
Q 
An Apartment building has rents of $800, $835, $850, $850, and $875 per month. What is the Mode of the rents?
$800
$835
There is no mode
$850
A

850

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21
Q 
A market is defined as a place where \_\_\_\_\_\_\_\_\_\_ are exchanged.
Properties
Goods
Rights
Goods and services
A

goods and services

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22
Q 
Which of these is NOT one of the four agents of production?
Land
Building Codes
Labor
Capital
A

building codes

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23
Q 
Rent controls and building codes are examples of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ forces that affect value.
Economic
Regulatory
Statutory
Governmental
A

governmental

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24
Q 
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ownership is specifically for husband and wife.
Joint Tenancy
Ownership in Severalty
Tenancy by the Entirety
Marital
A

tenancy by the entirety

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25
Q 
USPAP says that \_\_\_\_\_\_\_\_\_\_\_\_\_\_ is a fact, or an estimate of fact.
Cost
Value
Highest best use
An appraiser's opinion
A

cost

26
Q 
Legally nonconforming use is "a use that was lawfully established and maintained, but no longer conforms to the use regulations of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ in the zone where it is located."
Proposed zoning
Master plan
Conditional uses
Current zoning
A

current zoning

27
Q 
Prior to initiating the market analysis process, the appraiser must first decide \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
The client's scope of work
The neighborhood boundaries
The appraisal fee
Who the typical buyer would be
A

who the typical buyer would be

28
Q 
To provide an estimate of the length of time it took to sell properties during the period of analysis, we can look at \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Absorption rates.
Expiration rates
Interest rates
Rental rates
A

absorption rates

29
Q 
Which highest and best use criterion would require an appraiser to consider the frontage of the site?
Financially feasible
Legally permissible
Physically possible
Socially acceptable
A

physically possible

30
Q 
In Fannie Mae’s definition of value is says that it assumes “buyer and seller are \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ motivated.”
Strongly
Somewhat
Typically
Causally
A

Typically

31
Q 
\_\_\_\_\_\_\_\_\_\_\_\_\_\_ windows are the standard in most parts of the country.
Celestory
Single glazed
Triple glazed
Double glazed
A

double glazed

32
Q 
Inflationary conditions and the cost of money would be considered to be \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ forces.
Governmental
Economic
Reciprocal
Social
A

economic

33
Q 
Markets come in all sizes but, whatever the size, there is \_\_\_\_\_\_\_\_\_\_\_\_\_\_ of a product or a service.
A regulated exchange
An equilibrium
A free exchange
An abundance
A

a free exchange

34
Q 
Which of these is NOT one of the inherent characteristics of land?
Immobility
Homogeneity
Indestructability
Heterogeneity
A

homogeneity

35
Q 
A community's total employment is 58,240. The number of total core industry employees is 36,400. What is the base core multiplier?
.63
1.2
1.6
1.7
A

1.6

36
Q

Determination of the highest and best use of the property needs to be _________________________ .
As of a current date
As of the date of inspection
As of the date of the agreement with the client
As of an effective date

A

as of the effective date of the appraisal

37
Q 
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?
2,688
1,190
2,534
1,344
A

2534

subtract foyer area

38
Q 
The information extracted and used in the assignment will be compared to various verifiable data sources to ensure its \_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Capability
Utility
Credibility
Applicability
A

credibility

39
Q 
The ability of market participants to purchase a property is called \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Economic Purchasing Power
Effective purchasing power
Mortgage ability
Loan-to-Value Ratio
A

effective purchasing power

40
Q 
When improvements are added, such as roads, water and sewer; then \_\_\_\_\_\_\_\_\_ becomes \_\_\_\_\_\_\_\_\_\_\_\_\_.
Site, land
Land, a site
Land, a tract
Site, a development
A

land, a site

41
Q 
The market for real estate tends to be \_\_\_\_\_\_\_\_\_\_.
National
Regional
Local
State wide
A

local

42
Q 
Only those uses which produce a \_\_\_\_\_\_\_\_\_\_\_\_ are considered for the final test of maximum productivity.
Negative return
10% profit
Positive return
Beneficial use
A

positive return

43
Q 
The middle number found by arranging the numerical data sequentially from highest to the lowest or vice-versa is the \_\_\_\_\_\_\_\_\_\_\_\_\_.
Median
Mean
Mode
Range
A

MEDIAN

44
Q

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 _________________.
Incurable
Curable
Inherent
Cannot be determined from the information provided

A

CURABLE

45
Q 
The development of a vacant land area is \_\_\_\_\_\_\_\_\_\_\_\_\_ the highest and best use of the land.
Always
Never
Rarely
Not always
A

not always

46
Q 
”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
Inferred analysis
Inferential Analysis
Economic analysis
A

fundamental analysis

47
Q 
When supply and demand are out of balance, the market tends to move\_\_\_\_\_\_\_\_\_\_\_\_\_\_ .
Aimlessly
Counter-cyclically
Erratically
Towards equilibrium
A

towards equilibrium

48
Q 
Some of the more prominent economic principles and theories are \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Concentric
Related to and overlap each other
Stand-alone
Distinct and discrete
A

related to and overlap each other

49
Q 
The two types of data that are used in market analysis are \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
General and Classified data
General and Specific data.
Secondary and Primary data
Verified and Unverified data
A

general and specific data

50
Q 
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.
Average property value
Disposable income availability
Number of expired listings
Median property value
A

disposable income availability

51
Q 
Most of the custom constructed high-value properties are built to exacting specifications for their owners. Therefore, the appraiser needs to analyze the \_\_\_\_\_\_\_\_\_\_\_\_\_ of the high-value property.
Costs
Scarcity
Utility
Transferability
A

utility

52
Q 
Going concern value includes an operating business with \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ assets.
Tangible
Intangible
Unattached
Both tangible and intangible
A

Both tangible and intangible

53
Q 
The power of a given commodity to satisfy a need or want is called \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Scarcity
Fulfillment
Transferability
Utility
A

utility

54
Q 
In a neighborhood, there were 180 single-family sales last year, and there were 60 expired listings that did not sell. What is the expiration ratio for this area?
25%
30%
33.3%
40%
A

33.3

60/180

55
Q 
Which principle works in conjunction with the principle of change, but quantifies the rate and character of the change involved? 
Externalities
Balance
Inclining and Declining Periods.
Anticipation
A

inclining and declining periods

56
Q 
To measure the trends of the market area, the appraiser must ask questions about \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Balance
All of these items
Supply
Demand
A

ALL OF THESE

57
Q 
The most frequently occurring number of the data being analyzed is the \_\_\_\_\_\_\_\_\_\_.
Mean
Median
Mode
Range
A

mode

58
Q 
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.
$632,500
$628,500
$625,000
$612,500
A

$632,500

59
Q 
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
450
600
960
A

360

58,240 / 36,400 = 1.6

1.6 x 600 = 960

960 - 600 = 360

60
Q 
Regression and Progression are parts of the Principle of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
Declining Returns
Inclining and Declining Periods
Stages of a Neighborhood
Opportunity Costs
A

inclining and declining periods

Residential Market Analysis and Highest & Best Use (6 decks)

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