REE 4103 Exam 2 Study Questions and Answers Graded A 2024
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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
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