RESIDENTIAL MARKET ANALYSIS AND HIGHEST & BEST USE FINAL EXAM QUESTIONS WITH COMPLETE SOLUTIONS

The appraiser must perform the necessary market analysis to obtain enough information to ___________________________. Complete the Sales Comparison Approach Fill out the URAR Make the highest and best use determination for the subject property. Educate the client Make the highest and best use determination for the subject property. A property with restaurants and retail shops on the lower level and apartments on levels above is called a(n) ___________ property. Alternate-use Multi-Use Conclomerate Cooperative Multi-Use When the land value is subtracted from the sales price, the _______________________ is identified. Effective age of the improvements Depreciated value of the improvement Remaining economic life Age/Life Ratio Depreciated value of the improvement The ability of market participants to purchase a property is called _________________________________. Economic Purchasing Power Effective purchasing power Mortgage ability Loan-to-Value Ratio Effective purchasing power _______________ Value is the price a property will sell for, if required to be sold very quickly. Liquidation Sheriff's Sale Liquid Foreclosure Liquidation Part of the definition of Highest and Best Use is that it is the use that “results in the __________ value.” Typical Highest Forecasted Average Highest When improvements are added, such as roads, water and sewer; then _________ becomes _____________. Site, land Land, a site Land, a tract Site, a development Land, a site The Principle of Substitution holds that an ___________ buyer will not spend more for a property than the cost of acquiring a suitable substitute property. Principle of Substitution. Informed Typical Motivated Disinterested Informed Another name for Assessed Value is ______________ Value. Insurance Investment Market Ad Valorem Ad Valorem