Exam (elaborations)
Real Estate Valuation REE 4103 Bailey FSU Unit One Exam
Real Estate Valuation REE 4103 Bailey FSU Unit One Exam
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Real Estate Valuation REE 4103 BaileyFSU Unit One Exam
________ is/are created by the anticipation of benefits to be derived in the future. -
ANS-Value
____________________ is fundamental to the dynamics of supply and demand in a
free-enterprise, profit-maximizing economic system: - ANS-Competition
A buyer invests in a small strip mall because she believes the property will net $25,000
per year. This is an example of - ANS-Anticipation
A finished real estate product is created by combining: - ANS-Land, labor, capital, and
entrepreneurial coordination
A large residential lot is an ideal location for industrial development, but the zoning
imposed by the local government ensures that the lot will continue to be used for
residential development. The power of the local government to zone property is through
its: - ANS-Police power
A new two-family home is constructed in a neighborhood of new, three-family homes on
a lot that could support a three-family home. Market research and the application of the
sales comparison approach to value indicate an appraised value significantly lower than
the sum of the land and building costs. What principle of value was violated? -
ANS-Balance
A one-unit home owner who builds a new and unique structure will commonly find that -
ANS-Generally, fewer people desire unique structures.
A park that has just been built in your neighborhood would generally be considered a
....? - ANS-Positive Externality
A purchaser's wish for an item to satisfy human needs or individual wants beyond
essential life-support needs. - ANS-Desire
According to professional standards, appraisal practice includes which of the following
types of services? - ANS-Appraisal, appraisal review, and appraisal consulting.
, All of the following are attributes of land except: - ANS-The supply of land is infinite
All of the following are factors of value except: - ANS-
An appraisal provides ....? - ANS-A person's opinion of real property value.
An appraiser __________. - ANS-Measures and develops an opinion of value
An appraiser gathers market data from a neighborhood where new, high-rise apartment
buildings are replacing older, small, multifamily residences. The appraiser uses this data
to reflect the value of small, multifamily residences in a stable neighborhood. The
appraisal is rejected by a local bank on the grounds that it is unreliable. (Appraiser took
info from transitional neighborhood to get stable neighborhood value estimate). What
principle(s) of value was violated? - ANS-
An appraiser is allowed to provide an estimate of what type of value(s)? - ANS-Market
value, use value, assessed value, fair value, and other types of value identified and
defined at the outset of the appraisal assignment.
An estate in land describes the ___________________ that a person has in the real
property. - ANS-degree, nature, or extent of interest
Appraisals are used for all of the following except: - ANS-Appraisals guarantee the
market value of property to a lender.
As the nature and extent of land use controls change, so do the nature and extent of
private land ownership. Consequently, real estate appraisers must be familiar with the
regulations and restrictions that apply to land use in general, but do not need to analyze
how these regulations affect a specific property. - ANS-False
Because land ownership can be limited, ownership rights are the subect of law. The
value of these rights is the focus of real property appraisal. - ANS-True
Demand for real estate is least affected by which of the following? - ANS-
Effective purchasing power is: - ANS-The ability of an individual to participate in the
market.
Entrepreneurial Profit is: - ANS-The developer's profit in addition to the return of his/her
equity investment
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