Residential Market Analysis and Highest & Best Use Questions with 100% Complete Solutions

People tend to purchase homes in areas with amenities and facilities, and where they feel insulated from adverse property conditions. This is an example of the principle of: Conformity Substitution Change Competition - Conformity Which of these can increase conformity in a neighborhood? Covenants, Conditions and Restrictions zoning ordinances ordinances specifying minimum site sizes and setbacks all of these - all of these With regard to the four agents of production, which is the last agent to be satisfied? Capital Land Labor Coordination - Land The fact that a property's value may be different next week than it is today demonstrates what economic principle? Change Balance Anticipation Competition - Change What are the four agents of production? Contribution, Balance, Anticipation, Externalities land, labor, capital, coordination growth, static, decline, renewal capital, coordination, management, buildings - land, labor, capital, coordination Which of these would NOT be an example of the principle of externalities? an in-ground pool on the subject property environmental contamination in a nearby property an auto salvage yard located next door the poor condition of neighboring homes - an in-ground pool on the subject property A person purchases a four-plex because it has a strong income stream. This is an example of the principle of: Competition Anticipation Externalities Market Analysis - Anticipation Nothing ever remains stable or in balanced, as evidenced by the: Principle of Conformity Principle of Substitution Principle of Change Principle of Competition - Principle of Change Finish the sentence: Profit encourages ___________. Profit Declining Markets Copycats Competition - Competition When supply is higher than demand, the value of a product: Increases Remains in balance Declines There is no relationship - Declines What is another name for the principle of inclining and declining periods? ups and downs Externalities Anticipation Integration and Disintegration - Integration and Disintegration Generally, which changes more rapidly in a real estate market? Supply Demand Neither; they both change at the same rate There is no relationship - Demand The principle of substitution is associated with which approach to value? Both the Sales Comparison and Cost approaches Cost Approach Sales Comparison Approach None of these - Both the Sales Comparison and Cost approaches If there are not enough homes available in a market to satisfy demand, this is known as __________. a buyer's market seller's market equilibrium contribution - seller's market Which economic principle holds that value is affected by the price of acquiring a property or good of similar utility? Substitution Regression Anticipation Balance - Substitution Which economic principle relates to the advantages of an alternate investment? Supply and Demand Externalities Anticipation Opportunity Cost - Opportunity Cost