Real Estate Principles Unit 11 multiple choice 2

The “present and future anticipated enjoyment or profit from the ownership of property”, is one definition of

• Economic function

• Economic necessity

• Effective public demand

• Value

Market value of improved real property is least affected by

• An open market

• Its exchange value

• Its object value

• The original cost of materials

Which four elements must be present for a property to have market value?

• Demand, depreciation, scarcity, and utility

• Cost, demand, transferability, and utility

• Cost, feasibility, scarcity, and utility

• Demand, scarcity, transferability, and utility

The ultimate test of functional utility is

• Design

• Marketability

• Utility

• Maintenance costs

The term unneeded increment, most nearly means

• An increase in value due to population increase

• A decrease in value due to social forces rather than personal effort

• A decrease of property taxes

• Depreciation

The commonality of blighted areas, inflation, and the business climate is that they are _ forces and influence value

• Economic

• Physical

• Political

• Social

Which of the following appraisal approaches is based primarily on the principle of substitution?

• Cost approach

• Summation approach

• Sales comparison approach

• Income capitalization approach

In a well-planned residential community, which of the following contributes most of the maintenance of value?

• Conformity to proper land-use objectives

• Deed restrictions

• Variances to permit the highest and best use of every parcel of land

• Prevention of major thoroughfare construction through the community

More than anything else, what determines the value of a property?

• Listing price

• Purchase price

• Highest and best use

• Closest comparable properties

In the sales comparison approach to appraisal what is the most important as well as the most difficult step?

• Collection of data on comparable properties

• Analysis of data noncomparable properties

• Adjustment of data to reflect differences between the subject and comparable properties

• Establishing the correct unit of comparison