Exam (elaborations)
REE 4103 CH 19_20.
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Exam of 6 pages for the course REE 4103 at REE 4103 (REE 4103 CH 19_20.)
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REE 4103 CH 19/20A comparable sale included the seller taking back a purchase-money mortgage at 3%
under the market rate for 10 years. The appraisal was based on the cash-equivalent
market value. The adjustment for this factor would be called a
A. Financing terms adjustment
B. Conditions of sale adjustment
C. Expenditures made immediately after purchase adjustment
D. Real property rights conveyed adjustment - ANS-Financing terms adjustment
A comparable sale included the seller taking back a purchase-money mortgage at 3%
under the market rate for 10 years. The appraisal was based on the cash-equivalent
market value. The adjustment for this factor would be called a
A. Financing terms adjustment
B. Conditions of sale adjustment
C. Expenditures made immediately after purchase adjustment
D. Real property rights conveyed adjustment - ANS-Financing terms adjustment
A conditions of sale adjustment reflects
A. The difference in the market on the effective date of the appraisal and the dates of
sale of the comparables
B. The differences between the motivations of the seller and buyer on the date of sale of
a comparable and the typical motivation of buyers and sellers as described in the
definition of value
C. The differences in the sale prices of properties that sold for cash and the ones that
sold with financing
D. The differences in sale prices of properties that sold from non-related parties -
ANS-The differences between the motivations of the seller and buyer on the date of
sale of a comparable and the typical motivation of buyers and sellers as described in
the definition of value
A market conditions adjustment is applied in some situations because
A. Financing terms have altered prices
B. The market has changed since the comparable property sold
C. It allows the appraiser more flexibility in the indication of value
, D. All real estate values increase on a regular basis - ANS-The market has changed
since the comparable property sold
Adjustments for financing terms compensate for
A. A comparable that sold with financing below the current market rate
B. A comparable that sold with financing terms that were different than the terms
defined in the appraisal report
C. A comparable that sold with financing provided by a commercial bank
D. A comparable that sold with cash to the seller - ANS-A comparable that sold with
financing terms that were different than the terms defined in the appraisal report
Adjustments for the property rights conveyed, financing, conditions of sale, and the date
of sale are often made to the _______________ of the comparable property.
A. Unit price
B. Actual sale price
C. Square foot price
D. Gross income multiplier - ANS-Actual sale price
Comparative analysis is
A. A general term used to describe the process by which qualitative or quantitative
techniques are used to derive a value opinion in the sales comparison approach
B. The tool used in the cost approach to estimate depreciation to the buildings
C. A tool used to convert income to value in the income approach
D. A term used to describe levels that support construction costs - ANS-A general term
used to describe the process by which qualitative or quantitative techniques are used to
derive a value opinion in the sales comparison approach
Consider a 10,000 sf strip shopping center that sold five years ago for $300,000 and
then sold again recently for $345,000.
The indicated average annual appreciation of the shopping center would be?
A. $9,000
B. $45,000
C. -$45,000
D. -$9,000 - ANS-$9,000
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