Residential Market Analysis and Highest & Best Use with correct answers 100%

Residential Market Analysis and Highest & Best UseA property owner constructs a six-car garage at a cost of $80,000. It only adds $40,000 in value to the property. What economic principle does this best demonstrate? - correct answer Contribution What are the four agents of production? - correct answer land, labor, capital, coordination The principle of contribution is most closely associated with: - correct answer the Sales Comparison Approach (The contributory value of a given amenity is the public's perception of its actual contribution to value when considering the overall value of the property as a whole) When supply is higher than demand, the value of a product: - correct answer declines Finish the sentence: Profit encourages ___________. - correct answer competition What is another name for the principle of inclining and declining periods? - correct answer Integration and Disintegration An appraiser must value the land and the improvements based on the same use. Which economic principle or theory does this demonstrate? - correct answer Consistent Use (The Consistent Use Theory holds that the land and the buildings must all be valued considering the same highest and best use of the property. The appraiser cannot value the land under one use and the improvements under another use) When analyzing the life cycle for a neighborhood, which stage is characterized by equilibrium of supply and demand? - correct answer Stability The principle of surplus productivity is associated with which approach to value? - correct answer Income Approach