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REE 4103 EXAM 2 Questions With Revised
Answers
CH 17
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?
A. $120,000.00
B. $8,000.00
C. $80,000.00
D. $200,000.00 - answer✔✔$80,000.00
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?
A. $14,000 to $16,000
B. $16,000 to $20,000
C. $22,000 to $25,000
D. $28,000 to $32,000 - answer✔✔$28,000 to $32,000
Land can be valued by
A. Sales comparison, allocation, extraction, and abstraction
B. Sales comparison, land residual, ground rent capitalization, and determination
C. Sales comparison, land residual, allocation, and extraction
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D. Highest and best use, sales comparison, and asset management - answer✔✔Sales comparison,
land residual, allocation, and extraction
Land is always valued considering
A.Its highest and best use as improved.
B. Its highest and best use as though vacant.
C.The improvements thereon
D.The likelihood of conversion to commercial zoning - answer✔✔Its highest and best use as
though vacant.
Price per front foot is
A. a physical unit of comparison
B. not as accurate as price per acre
C. rarely used in residential site analysis
D. an accurate guide to site marketability
a physical unit of comparison
Residential sites are often valued using
A. A price per square foot
B. A price per animal unit month
C. A price per room
D. A price per cubic meter - answer✔✔A price per square foot
The subdivision development analysis technique is
A. More accurate than a well-prepared sales comparison analysis
B. Less accurate than the allocation method
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C. Is very applicable when the main criteria of value is the number of lots that can be developed
out of a parcel of land
D. 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
To estimate its market value, the land under an improved property is best compared to sales of
vacant land that
A. Have the same or similar highest and best use
B. Have the same type of building on them (after the sale)
C. Show the maximum value for the subject property
D. Show the minimum value for the subject property - answer✔✔Have the same or similar
highest and best use
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?
A. $9,000 - $11,000
B. $7,200 to $9,000
C. $5,400 to $6,750
D. $6,600 to $11,250 - answer✔✔$7,200 to $9,000
The land valuation technique that relies on an analysis of ratios of land value to property value is
A. Allocation
B. Extraction
C. Interpolation
D. Land residual - answer✔✔Allocation
CH 18
Which approach would be best to use when appraising a 15-20 year old house?
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A. Cost
B. Feasibility study
C. Sales comparison
D. Income capitalization - answer✔✔Sales comparison
An open market transaction would not be one:
A. Listed for at least 30 days
B. Listed on a multiple listing service
C. Advertised in local newspapers
D. Sold to a relative - answer✔✔Sold to a relative
Comparable sales that require no adjustment to the subject are usually sales:
A. Within two years
B. Of properties equal in square footage
C. In the same neighborhood
D. In new developments with nearly identical properties - answer✔✔In new developments with
nearly identical properties
The principle of _____________ states that a buyer will not pay more for a site than for another
equally desirable one:
A. Anticipation
B. Imbalance
C. Substitution
D. Balance - answer✔✔Substitution
For a property to be considered as a comparable:
