REE 3043 Quiz 2 Study Guide
Questions and Correct Answers.
Factors that affect housing market segmentation include all except: - Answer Household
unemployment status
The process of creating a "market-defining story" includes all of these questions
except: - Answer What is the price?
The cycle of real estate market research starts with: - Answer Creating a market defining
story.
Features of an office building that may be important to one market segment or another include:
- Answer All of the above.
A strong assertion about the large amount of data seemingly available for real estate market
research is that most of it is: - Answer Irrelevant to a given analysis.
The approach to real estate market research advocated in this chapter starts with the: - Answer
The nature of the property.
A powerful tool for managing, manipulating, and displaying location-specific data
is: - Answer Geographic information systems.
Avery sophisticated, data intensive, and statistically intensive method of
examining market segmentation is known as: - Answer Psychographic research.
Causes of real estate cycles include: - Answer Both a and b, but not c
Data used in the market research cases in this chapter that are publicly available over the
Internet include all of the following except: - Answer Data on job location from the National
Transportation board.
The final price for each comparable property reached after all adjustments have
been made is termed the: - Answer Final adjusted sale price.
Which of the following is not included in accrued depreciation when applying the
, cost approach to valuation? - Answer Tax depreciation
The final price after reconciliation of the answers obtained from two or more
approaches is termed the - Answer Final estimate of value.
To reflect a change in market conditions between the date on which a comparable property sold
and the date of appraisal of a subject property, which type of
adjustment is made? - Answer Market conditions.
In appraising a single-family home, you find a comparable property very similar to the subject
property. One important difference, however, concerns the financing. The comparable property
sold one month ago for $120,000 and was financed with an 80 percent, 30-year mortgage at 5.0
percent interest. Current market financing terms are 80 percent, 30-year mortgage at 7 percent
interest. The monthly payments on the market financing would be $638.69, while the monthly
payments on the special 5.0 percent financing are $515.35. Assume the borrower's opportunity
cost rate is 7 percent. The approximate present value of the present savings on the non-market
financing is ______, and this amount should be
_______ to the transaction price of the comparable. - Answer $18,539, subtracted.
You find two properties that have sold twice within the last two years. Property A sold 22
months ago for $98,500; it sold last week for $108,000. Property B sold 20 months ago for
$105,000; it sold two weeks ago for $113,500. What is the average monthly compound rate of
change in sale prices? e. none of the above - Answer 004047 or 0.40%
A comparable property sold six moths ago for $150,000. The adjustments for the
various elements of comparison have been calculated as follows: Location: -5 percent
Market conditions: +8 percent Physical characteristics: +$12,500 Financing terms: -$2,600
Conditions of sale: 0 Legal characteristics: 0 Use: 0
Nonrealty items: -$3,000
(Note that the term "Legal characteristics" should be replaced with the term
"property rights conveyed")
Making the adjustments in the order suggested in Exhibit 7-6, what is the comparable's final
adjusted sale price/indication of the subject's value? - Answer $160,732
A property comparable to the single-family home you are appraising sold 3
Questions and Correct Answers.
Factors that affect housing market segmentation include all except: - Answer Household
unemployment status
The process of creating a "market-defining story" includes all of these questions
except: - Answer What is the price?
The cycle of real estate market research starts with: - Answer Creating a market defining
story.
Features of an office building that may be important to one market segment or another include:
- Answer All of the above.
A strong assertion about the large amount of data seemingly available for real estate market
research is that most of it is: - Answer Irrelevant to a given analysis.
The approach to real estate market research advocated in this chapter starts with the: - Answer
The nature of the property.
A powerful tool for managing, manipulating, and displaying location-specific data
is: - Answer Geographic information systems.
Avery sophisticated, data intensive, and statistically intensive method of
examining market segmentation is known as: - Answer Psychographic research.
Causes of real estate cycles include: - Answer Both a and b, but not c
Data used in the market research cases in this chapter that are publicly available over the
Internet include all of the following except: - Answer Data on job location from the National
Transportation board.
The final price for each comparable property reached after all adjustments have
been made is termed the: - Answer Final adjusted sale price.
Which of the following is not included in accrued depreciation when applying the
, cost approach to valuation? - Answer Tax depreciation
The final price after reconciliation of the answers obtained from two or more
approaches is termed the - Answer Final estimate of value.
To reflect a change in market conditions between the date on which a comparable property sold
and the date of appraisal of a subject property, which type of
adjustment is made? - Answer Market conditions.
In appraising a single-family home, you find a comparable property very similar to the subject
property. One important difference, however, concerns the financing. The comparable property
sold one month ago for $120,000 and was financed with an 80 percent, 30-year mortgage at 5.0
percent interest. Current market financing terms are 80 percent, 30-year mortgage at 7 percent
interest. The monthly payments on the market financing would be $638.69, while the monthly
payments on the special 5.0 percent financing are $515.35. Assume the borrower's opportunity
cost rate is 7 percent. The approximate present value of the present savings on the non-market
financing is ______, and this amount should be
_______ to the transaction price of the comparable. - Answer $18,539, subtracted.
You find two properties that have sold twice within the last two years. Property A sold 22
months ago for $98,500; it sold last week for $108,000. Property B sold 20 months ago for
$105,000; it sold two weeks ago for $113,500. What is the average monthly compound rate of
change in sale prices? e. none of the above - Answer 004047 or 0.40%
A comparable property sold six moths ago for $150,000. The adjustments for the
various elements of comparison have been calculated as follows: Location: -5 percent
Market conditions: +8 percent Physical characteristics: +$12,500 Financing terms: -$2,600
Conditions of sale: 0 Legal characteristics: 0 Use: 0
Nonrealty items: -$3,000
(Note that the term "Legal characteristics" should be replaced with the term
"property rights conveyed")
Making the adjustments in the order suggested in Exhibit 7-6, what is the comparable's final
adjusted sale price/indication of the subject's value? - Answer $160,732
A property comparable to the single-family home you are appraising sold 3
