REE4103 Exam Questions With Correct Answers

EXAM STUDY MATERIALS July 30, 2024 11:26 AM REE4103 Exam Questions With Correct Answers Price per front foot is - answer✔✔a physical unit of comparison For a property to be considered as a comparable: - answer✔✔It must be a competitive property It must be an open market transa ction A conditions of sale adjustment reflects - answer✔✔The differences between the motivations of the seller and buyer on the date of sale of a comparable and the typical motivation of buyers and sellers as described in the definition of value A large ho me built in an area of small cottages is an example of: - answer✔✔overimprovement The quantity survey method is - answer✔✔The most comprehensive and detailed method of estimating reproduction or replacement cost The three principal methods of estimating de preciation are - answer✔✔Market extraction age life breakdown The land valuation technique that relies on an analysis of ratios of land value to property value is - answer✔✔Allocation The principle of _____________ states that a buyer will not pay more for a site than for another equally desirable one: - answer✔✔Substitution A comparable sale included the seller taking back a purchase -money mortgage at 3% under the market rate for 10 ye ars. The appraisal was based on the cash -equivalent market value. The adjustment for this factor would be called a - answer✔✔Financing Terms Adjustment The cost approach is most applicable when the property being appraised: - answer✔✔has relatively new imp rovements that represent the highest and best use of the land The most detailed, complex, costly and time -consuming method of cost estimation is the: - answer✔✔quantity survey Functional obsolescence is - answer✔✔The difference between what you have and wh at you should have EXAM STUDY MATERIALS July 30, 2024 11:26 AM The subdivision development analysis technique is - answer✔✔Is very applicable when the main criteria of value is the number of lots that can be developed out of a parcel of land An open market transaction would not be one: - answer✔✔Sold to a relative Qualitative analysis is based on - answer✔✔"Inferior" or "superior" ratings Direct costs are - answer✔✔Expenditures for the labor and material used in the construction of the improvements Cost index trending is - answer✔✔Estimating current cost based on the original cost extended to the effective date Land can be valued by - answer✔✔Sales comparison, land residual, allocation, and extraction Adjustments for financing terms compensate for - answer✔✔A comparable that sold with financing terms that were different than the terms defined in the appraisal report Reproduction cost is: - answer✔✔the cost new of an exact replica of the subject Reproduction or replacement cost includes all of the following except - answer✔✔fixed and variable expenses o f operations Effective age refers to: - answer✔✔apparent age, considering the physical condiion and marketability of a structure Physical units of comparison are a substitute for adjusting for: - answer✔✔Size In the cost approach, the valuation of land inv olves the principle of: - answer✔✔Highest and Best use Entrepreneurial profit is the profit made by the: - answer✔✔Developer Units of comparison - answer✔✔Are items that represent a breakdown of the price based on a significant variable When reconciling th e adjusted sales price of comparables, the greatest emphasis should be given to: - answer✔✔None of the above By estimating replacement cost in lieu of reproduction cost, an appraiser - answer✔✔Eliminates the need to measure many, but not usually all, forms of functional obsolescence All of the following are cost estimation methods except: - answer✔✔unit breakdown To estimate its market value, the land under an improved property is best compared to sales of vacant land that - answer✔✔Have the same or similar highest and best use Property sale prices - answer✔✔Are negotiated between buyers and sellers