Mckissock Highest and Best Use Course| 148 QUESTIONS| WITH COMPLETE SOLUTIONS

A process for examining the demand for and supply of a property type and the geographic market area for that property type is called CORRECT ANSWERS: Market analysis is a set of arrangements in which many buyers and sellers are brought together through the price mechanism CORRECT ANSWERS: Market The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value is called CORRECT ANSWERS: Highest and best use There is no tangible proof that an actual market exists now, or has ever existed, without CORRECT ANSWERS: Absorption is the value that answers the question: "Is the product freely available?" CORRECT ANSWERS: Scarcity is the value that answers the question: "If users want the product, can they afford it?" CORRECT ANSWERS: Effective buying power is the value that answers the question: "Does anyone want the product?" CORRECT ANSWERS: Desire The price at which the amount willingly supplied and the amount willingly demanded are equal or the price at which supply is perfectly allocated is called the CORRECT ANSWERS: Equilibrium price The goal of market analysis is to identify the relationship between quantifiable demand and competitive supply in the subject property's real estate market, both now and in the future. CORRECT ANSWERS: True It cannot be overstated that every assignment to develop an opinion of the value of real property requires market analysis. CORRECT ANSWERS: True The principle of supply and demand recognizes that market actions have this. CORRECT ANSWERS: Consequences The downward-sloping demand curve indicates that as the price decreases, demand for space will CORRECT ANSWERS: Increase This process focuses on general market information about a property type or a defined area. CORRECT ANSWERS: Market study