REAL 4000 uga Test 3 Exam with 100% Correct Answers Updated 2024/2025
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REAL 4000 uga
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REAL 4000 Uga
REAL 4000 uga Test 3 Exam with 100%
Correct Answers Updated 2024/2025
Real estate appraisals - Formal estimates of the value of a piece of
land.
Most are generated by lenders.
Also generated by courts and buyers/sellers.
Market value - The most probable selling price of a property under
norm...
Real estate appraisals ✔✔- Formal estimates of the value of a piece of
land.
Most are generated by lenders.
Also generated by courts and buyers/sellers.
Market value ✔✔- The most probable selling price of a property under
normal market conditions.
Investment value ✔✔- The value of the property to a particular investor.
Market value and investment value are both...? ✔✔- Concepts. Meaning
we never know what they truly are
Transaction prices ✔✔- The amount actually payed for a piece of property
in a completed transaction.
Market analysis ✔✔- Goal is to understand local supply and demand and
their impact on future prices.
Highest and best use ✔✔- the highest and best use of a property is found
to be:
, Legally permissible
Physically possible
Financially feasible
maximally productive (the use that adds the most value)
It also ignores existing improvements and takes into account the cost of
converting the land to a new use.
Three valuation methods ✔✔- The sales comparison approach
The cost approach
and the income approach
you take the weighted average of the indicated values that come from all
three approaches to get a single estimate of the properties value.
Sales comparison approach ✔✔- Underlying concept is that the value of a
piece of real estate can be determined by analyzing the sale price of similar
properties.
Elements of comparison ✔✔- The key determinants of value
Location
age
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