Real Estate Quiz

What would be the highest and best use for a vacant property?

• The use that complies with zoning

• The use that conforms with the neighboring properties

• The use that demands the highest return to the site

• The use that is most commonly found in the area

Which of the following is NOT an indicator that a market is appreciating?

• Contractual prices increase

• Time on market increases

• Properties move faster

• Offering prices increase

A property sold as part of a bankruptcy proceeding is most likely equal to what value?

• Market Value

• Liquidation Value

• Investment Value

• Assessed Value

Mark, and his investor group, are looking to purchase an office building. To help in their analysis, they hire an appraiser to determine the value of the property. What value will the appraisal report most likely yield?

• Assessed Value

• Value-in-use

• Market Value

• Investment Value

The amount a purchaser agrees to pay, and a seller agrees to accept in an arms-length transaction, is also known as...?

• Cost

• Price

• Investment Value

• Value

The loss of value caused by super adequacy, inadequacy or changes in the art inherent in the property itself is known as what...?

• Degrade

• Economic Obsolescence

• Functional Obsolescence

• Devalue

Which of the following property types will most likely use a value-in-use value when conducting an appraisal...?

• Single family home

• School

• Commercial property

• Self storage facility

Steve is looking to buy a home in a particular market. How will Steve know if the market is appreciating...?

• Contractual prices in the market show a decreasing trend

• Properties will move slower

• Offering prices in the market will show an increasing trend

• The time a property stays on the market increases

This is a valuation method which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions...?

• Market Approach

• Cost Approach

• Income Approach

• Sales Comparison Approach

The total dollar expenditure for labor, materials, legal services, architectural design, financing, taxes during construction, interest, contractor's overhead and profit, and entrepreneurial overhead and profit is known as what...?

• Value

• Market Value

• Cost

• Appraised Value