Exam (elaborations)
Residential Market Analysis and Highest and Best Use.
- Course
- Studytests
- Institution
- Studytests
Residential Market Analysis and Highest and Best Use.
[Show more]
Content preview
Residential Market Analysis and Highestand Best Use
Utility - CORRECT ANSWER-Which segment of the real estate market does the
subject product satisfy? Who is the market? Does the product provide what the
buyer is looking for?
Desire - CORRECT ANSWER-Is there a demand for this real estate product?
Are there any potential buyers?
Scarcity - CORRECT ANSWER-How competitive is the subject property in its
market segment? (How supply and demand interact-number of homes versus
number of buyers.)
Effective purchasing power - CORRECT ANSWER-Is the value of the product
similar to the price? (A valid opinion of value for a property includes an accurate
assessment of the market's ability to pay for the property.)
The use that maximizes a property's value is its highest and best use. -
CORRECT ANSWER-True
If a property has no improvements, there is no need to perform a highest and
best use analysis of the site as though vacant. - CORRECT ANSWER-False
An interim use is a temporary use to which a site or an improved property is put
until it is ready to be put to its future highest and best use. - CORRECT
ANSWER-True
One reason to identify the highest and best use of a property is to establish a
basis for the selection of comparable sale properties. - CORRECT
ANSWER-True
In determining the highest and best use of a site as though vacant, an appraiser
may never assume that a parcel can be made vacant by demolishing any
improvements. - CORRECT ANSWER-False
, Neighborhood in transition - CORRECT ANSWER-A market area undergoing an
economic and/or demographic shift.
Ideal improvement - CORRECT ANSWER-The bridge between highest and best
use of the site as though vacant and highest and best use of the property as
improved.
Two analyses of highest and best use - CORRECT ANSWER-1. Site as though
vacant
2. The property as improved.
Legal nonconforming use - CORRECT ANSWER-A use that was lawfully
established and maintained, but no longer conforms to the use regulations of
current zoning.
Highest and best use analysis - CORRECT ANSWER-Conducted to help the
appraiser develop a basis for an opinion of the property's market value.
Site as though vacant options - CORRECT ANSWER-1. Improve: With what?
When?
2. Leave vacant: Why? Oversupplied market, limited demand, lack of or high cost
of money, absence of growth
Property as improved options - CORRECT ANSWER-1. Lease as is: Why?
Because it already meets demand.
2. Alter: Renovate or remodel. Convert to? Enlarge. Demolish
Four criteria/tests of highest and best use - CORRECT ANSWER-1. Legal
permissibility
2. Physical possibility
3. Financial feasibility
4. Maximum productivity
These tests must be applied before those for financial feasibility and maximum
productivity. - CORRECT ANSWER-Legal permissibility and physical possibility
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller EXAMQA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.80. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52355 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now