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REE 4103 EXAM 2 Bliss Questions With
Revised Answers
To estimate its market value, the land under an improved property is best compared to sales of
vacant land that
Have the same or similar highest and best use
Have the same type of building on them (after the sale)
Show the maximum value for the subject property
Show the minimum value for the subject property - answer✔✔Have the same or similar highest
and best use
Price per front foot is
a physical unit of comparison
not as accurate as price per acre
rarely used in residential site analysis
an accurate guide to site marketability - answer✔✔a physical unit of comparison
You are asked to appraise a vacant building lot. The neighborhood is about 75% built up. Most
lots in the area are from 55 to 65 feet wide; the lot under appraisal is 60 feet. Comparable sales
indicate that lots are selling at $120 to $150 per front foot. What is a good estimate of the price
range for this lot?
$9,000 - $11,000
$7,200 to $9,000
$5,400 to $6,750
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$6,600 to $11,250 - answer✔✔$7,200 to $9,000
Residential sites are often valued using
A price per square foot
A price per animal unit month
A price per room
A price per cubic meter - answer✔✔A price per square foot
The subdivision development analysis technique is
More accurate than a well-prepared sales comparison analysis
Less accurate than the allocation method
Is very applicable when the main criteria of value is the number of lots that can be developed out
of a parcel of land
Is not an accepted technique for the valuation of land - answer✔✔Is very applicable when the
main criteria of value is the number of lots that can be developed out of a parcel of land
Land can be valued by
Sales comparison, allocation, extraction, and abstraction
Sales comparison, land residual, ground rent capitalization, and determination
Sales comparison, land residual, allocation, and extraction
Highest and best use, sales comparison, and asset management - answer✔✔Sales comparison,
land residual, allocation, and extraction
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?
$14,000 to $16,000
$16,000 to $20,000
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$22,000 to $25,000
$28,000 to $32,000 - answer✔✔$28,000 to $32,000
Land is always valued considering
Its highest and best use as improved.
Its highest and best use as though vacant.
The improvements thereon
The likelihood of conversion to commercial zoning - answer✔✔Its highest and best use as
though vacant.
The land valuation technique that relies on an analysis of ratios of land value to property value is
Allocation
Extraction
Interpolation
Land residual - answer✔✔Allocation
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?
$120,000.00
$8,000.00
$80,000.00
$200,000.00 - answer✔✔$80,000.00
Units of comparison
Rates are difficult to estimate
Classifications are difficult to estimate
Are items that represent a breakdown of the price based on a significant variable
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Are the characteristics that cause the prices paid for real estate to vary - answer✔✔Are items that
represent a breakdown of the price based on a significant variable
Comparable sales that require no adjustment to the subject are usually sales:
Within two years
Of properties equal in square footage
In the same neighborhood
In new developments with nearly identical properties - answer✔✔In new developments with
nearly identical properties
An open market transaction would not be one:
Listed for at least 30 days
Listed on a multiple listing service
Advertised in local newspapers
Sold to a relative - answer✔✔Sold to a relative
Physical units of comparison are a substitute for adjusting for:
Location
Terms of financing
Age
Size - answer✔✔size
For a property to be considered as a comparable:
It must have sold within five years
It must be a competitive property
It must be an open market transaction
It must be the same size. - answer✔✔It must be a competitive property
