Residential Market Analysis and Highest & Best Use QUESTIONS AND ANSWERS 100% CORRECT

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Residential Market Analysis and Highest & Best Use QUESTIONS AND ANSWERS 100% CORRECT The power of a given commodity to satisfy a need or want is called __________________. Correct Answer: Utility ... The development of a vacant land area is _____________ the highest and best use of the land. Correct Answer: Not Always The Consistent-Use Theory says the _______________ must all be valued considering the same highest and best use of the property Correct Answer: Land and the Buildings ________________ involves subdividing the larger market into a workable study area. Correct Answer: Market Identification The ________________ Cycle of a neighborhood is characterized by demand and supply trending toward equilibrium. Correct Answer: Stability Eminent domain is the right of the government to take private property, for public good, with __________________. Correct Answer: Just Compensation The improvements are normally valued for their ___________ value relative to the highest and best use of the land. Correct Answer: Contributory The right of eminent domain may be exercised by these 3. Correct Answer: State government agencies Public service companies Local government The relationship between the supply and the demand for a site's particular highest and best use is a part of the analysis of ___________________ . Correct Answer: Financial Feasibility All of these are Governmental restrictions on land use EXCEPT ______________________. Correct Answer: Deed Restrictions Because of the Principle of _______________ the appraiser's opinion of value is always "as of" a specific date or time. Correct Answer: Change Another name for a market segment is a ____________________. Correct Answer: Submarket A _______________ neighborhood is said to be in conformity. Correct Answer: Homogenous Which statement is NOT true regarding market identification? Correct Answer: The market should include all properties in a geographic area. The market is too nebulous to analyze as a whole, so the appraiser must segment the market into ______________ in order to look for trends. Correct Answer: Components The two types of data that are used in market analysis are _________________. Correct Answer: General and Specific Which of these is NOT one of the ingredients of a Highest and best Use? Physically possible Legally Permissible Financially feasible Consistent Use Correct Answer: Consistent Use Which of these is NOT one of the four agents of production? Land Building Codes Labor Capital Correct Answer: Building Codes USPAP says that "appraisers are cautioned to identify the exact definition of market value and ____________________" Correct Answer: its authority. 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." Correct Answer: Current zoning The cost of foregoing one type of investment for another is the Principle of __________________. Correct Answer: Opportunity Costs Some assignments require personal verification of comparable sales with a party to the transaction. These might include all of these (Buyer, Assessor, Seller, Agent) EXCEPT ______________. Correct Answer: assessor SLIDE IDENTIFICATION Correct Answer: Another name for Sole Ownership is _________________. Correct Answer: Ownership in Severalty Statistical analysis of data is a mechanical means to ascertain estimates using formulas specifically designed for the compilation of ___________________. Correct Answer: Large amounts of data Deed restrictions are an example of __________ restrictions on land use. Correct Answer: Private Which highest and best use criterion would require an appraiser to consider the soil composition of the site? Correct Answer: Physically Possible The cost of a given amenity does not guarantee the ___________ of that particular item. Correct Answer: Value Value in Use is based on the property's _________________. Correct Answer: current use. A property with restaurants and retail shops on the lower level and apartments on levels above is called a(n) ___________ property. Correct Answer: multi-use An acronym to help you remember the bundle of rights is ______________. Correct Answer: SLUGER The Bundle of Rights" or property interests are commonly considered to include: • The right to Sell the property • The right to Lease or rent the property • The right to Use or demolish the property • The right to Give it away • The right to Enter or leave the property • The right to Refuse any of these rights. _______________ analysis examines the present worth of a future benefit. Correct Answer: Investment analysis An opinion of value can be directly related to the ________________ of the rights of ownership for the individual property. Correct Answer: Presence or absence The elements of nature can affect value. This is called a(n) _____________ force. Correct Answer: Environmental Force The difference between the highest sale price and the lowest sale price for those sales being analyzed is the ____________. (Mean Median Mode Range) Correct Answer: Range 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. Correct Answer: Market All _____________ appraisal assignments require an opinion of Highest and Best Use. Correct Answer: market value Who will decide if the individual improvement is in conformance with the neighborhood or not? Correct Answer: The appraiser [Show More]

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