REE 4103 Exam 2 Study Questions and Answers Graded A 2024
7 views 0 purchase
Course
REE 4103
Institution
REE 4103
If the site represents 40% of the total value in a particular neighborhood, how much land value would be allocated from a $200,000 sale of a single family home? - $80,000
In the subject property's neighborhood, improved properties are selling for prices in a range of $140,000 to $160,000. Resear...
REE 4103 Exam 2 Study Questions and
Answers Graded A 2024
POSSIBLEA
REE 4103
9/2/24
,REE 4103 Exam 2
If the site represents 40% of the total value in a particular neighborhood, how much land
value would be allocated from a $200,000 sale of a single family home? - $80,000
In the subject property's neighborhood, improved properties are selling for prices in a
range of $140,000 to $160,000. Research reveals a typical land value-to-total property
value ratio of 20%. What is the range of value for a similar site in this neighborhood? - •
$28,000 to $32,000
Land can be valued by - Sales comparison, land residual, allocation, and extraction
The land valuation technique that relies on an analysis of ratios of land value to property
value is - Allocation
If the land has improvements on it, the land must be valued - • Extraction method
In estimating the value of a commercial lot, which of the following methods would most
likely be used, if there are no direct comparables? - • Income Approach
In one step of the land residual technique, the building capitalization rate is applied to
the known building value to estimate - • Net operating income needed to support the
building
Items that must be considered in the valuation of land include - • water, mineral, and air
rights
Land is always valued considering - • Its highest and best use as though vacant
Land prices are analyzed and adjusted in the sales comparison process. These
adjustments may involve - • Any of the above:
o Adding or subtracting lump-sum amounts
o Adding or subtracting percentages
REE 4103 Exam 2
, REE 4103 Exam 2
o Accumulating percentages
Price per front foot is - • A physical unit of comparison
Residential sites are often valued using - A price per square foot
Standard land valuation techniques include - • Sales comparison, land residual,
allocation, and extraction
The ground rent capitalization technique of site valuation - • Is another means of
applying the income capitalization approach to estimating the value of land***
The sales comparison approach of appraising land is difficult in older built-up
neighborhoods because: - • There's not a market for the subject property
The subdivision development analysis technique is - • Very applicable when the main
criteria of value is the number of lots that can be developed out of a parcel of land
The subdivision development method in appraisal is used to estimate the value of
vacant acreage that is ready to be subdivided. This method requires: - • The study of
sales of subdivided lots
• The projection of land development costs
The subdivision development method is used to estimate the value of vacant acreage
that is ready to be subdivided. This method requires - • The study of sales of subdivided
lots and the projection of land development costs
To be used as comparables, land sales must be: - • All of the above:
o Competitive with the subject
o Relatively close in time to the date of value
o Open-market transactions
REE 4103 Exam 2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller PossibleA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $16.49. You're not tied to anything after your purchase.
