REE Exam 2 Questions and Solutions |
Grade A+
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?
✔️: $80,000.00
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?
✔️: $28,000 to $32,000
Land can be valued by
✔️: Sales comparison, land residual, allocation, and extraction
Land is always valued considering
✔️: Its highest and best use as though vacant.
Price per front foot is
,✔️: a physical unit of comparison
Residential sites are often valued using
✔️: A price per square foot
The subdivision development analysis technique is
✔️: Is very applicable when the main criteria of value is the number of lots that can be
developed out of a parcel of land
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
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?
✔️: $7,200 to $9,000
,The land valuation technique that relies on an analysis of ratios of land value to property
value is
✔️: Allocation
Which approach would be best to use when appraising a 15-20 year old house?
✔️: Sales comparison
An open market transaction would not be one:
✔️: Sold to a relative
Comparable sales that require no adjustment to the subject are usually sales:
✔️: In new developments with nearly identical properties
The principle of _____________ states that a buyer will not pay more for a site than for
another equally desirable one:
✔️: Substitution
For a property to be considered as a comparable:
✔️: It must be a competitive property
, It must be an open market transaction
Physical units of comparison are a substitute for adjusting for:
✔️: Size
Property sale prices
✔️: Are negotiated between buyers and sellers
Current listings that have been exposed to the market for a reasonable time
✔️: Tell the appraiser what the subject's market value cannot exceed
Units of comparison
✔️: Are items that represent a breakdown of the price based on a significant variable
Which approach is usually the most applicable for appraising residences?
✔️: Sales Comparison.
Qualitative analysis is based on
Grade A+
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?
✔️: $80,000.00
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?
✔️: $28,000 to $32,000
Land can be valued by
✔️: Sales comparison, land residual, allocation, and extraction
Land is always valued considering
✔️: Its highest and best use as though vacant.
Price per front foot is
,✔️: a physical unit of comparison
Residential sites are often valued using
✔️: A price per square foot
The subdivision development analysis technique is
✔️: Is very applicable when the main criteria of value is the number of lots that can be
developed out of a parcel of land
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
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?
✔️: $7,200 to $9,000
,The land valuation technique that relies on an analysis of ratios of land value to property
value is
✔️: Allocation
Which approach would be best to use when appraising a 15-20 year old house?
✔️: Sales comparison
An open market transaction would not be one:
✔️: Sold to a relative
Comparable sales that require no adjustment to the subject are usually sales:
✔️: In new developments with nearly identical properties
The principle of _____________ states that a buyer will not pay more for a site than for
another equally desirable one:
✔️: Substitution
For a property to be considered as a comparable:
✔️: It must be a competitive property
, It must be an open market transaction
Physical units of comparison are a substitute for adjusting for:
✔️: Size
Property sale prices
✔️: Are negotiated between buyers and sellers
Current listings that have been exposed to the market for a reasonable time
✔️: Tell the appraiser what the subject's market value cannot exceed
Units of comparison
✔️: Are items that represent a breakdown of the price based on a significant variable
Which approach is usually the most applicable for appraising residences?
✔️: Sales Comparison.
Qualitative analysis is based on
