Maine real estate module 3 questions with correct answers

Consider a three bedroom, two bath cape on a two-acre parcel in rural Maine and then the same property on the coast in southern Maine. The value of the property in southern Maine is likely to be higher because of: a. Supply and demand. b. Economic forces. c. Social forces. d. All of the above. CORRECT ANSWER d. All of the above. The valuation principle of Contribution is best illustrated by the: a. Added value of good maintenance. b. Value a two car garage adds to a single family home. c. Extra service the listing agent provides to get the property sold. d. Points paid by seller at closing and its impact on value. CORRECT ANSWER b. Value a two car garage adds to a single family home. The valuation concept of Substitution is best illustrated by: a. The value added by an extra garage. b. A consumer with a choice of similar properties will choose is less expensive. c. Commercial properties with comparable locations will bring comparable prices. d. None of the above. CORRECT ANSWER b. A consumer with a choice of similar properties will choose is less expensive.