REE 4103 Exam 2 Questions with 100%
Correct Answers Already Passed
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 propert...
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
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
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