REE 4103 EXAM 2 Bliss Questions and
Answers 100% Pass | Graded A+
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 - ✔✔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 - ✔✔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
$6,600 to $11,250 - ✔✔$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 - ✔✔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 - ✔✔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 -
✔✔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
, $22,000 to $25,000
$28,000 to $32,000 - ✔✔$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 - ✔✔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 - ✔✔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?
