REE 3043 Quiz 2 UPDATED ACTUAL Exam
Questions and CORRECT Answers
Factors that affect housing market segmentation include all except:
household size.
household income.
household lifestyle.
household unemployment status.
household age. - CORRECT ANSWER - household unemployment status.
A popular adage in real estate is that property value is all about "location, location, location."
However, for most property types in nonresidential realms, non-locational requirements are
equally or even more important. All of the following are examples of non-locational factors
EXCEPT:
Proximity to modes of public transportation.
Nature of current tenants.
Amount of parking.
Floor plate size. - CORRECT ANSWER - Proximity to modes of public transportation.
,A very sophisticated, data intensive and statistically intensive method of examining market
segmentation is known as:
survey research.
cluster analysis.
psychographics research.
discriminant analysis.
regression analysis. - CORRECT ANSWER - psychographics research.
Since most data for a given market study is not readily available, analysts must be creative in
their use of data that they are able to obtain. The primary source for detailed household
demographic information is:
the U.S. Bureau of the Census.
not available publicly.
the Federal Reserve.
the local tax collector's office. - CORRECT ANSWER - the U.S. Bureau of the Census.
Which tool would a real estate investor use to seek to describe the human characteristics of
consumers that may have bearing on their response to products, packaging, advertising and
public relations efforts?
,Survey research.
Census data and a marker.
Psychographics.
Geographical information systems. - CORRECT ANSWER - Psychographics.
In real life, the variables involved in predicting occupancy and rental rate growth parameters are:
impossible to guess at.
easy to estimate.
easy to figure.
difficult to predict. - CORRECT ANSWER - difficult to predict.
After initial data has been collected in the market research process, the analyst should attempt to
identify the ________________________; that is, the key numbers that characterize the current
condition and trend in the market.
product characteristics
market parameters
strengths and weaknesses of the competition
segmentation characteristics - CORRECT ANSWER - market parameters
, A new residential development will face competition from other new developments, other
builders, and sales of existing homes. To determine if demand in that market segment will be
sufficient to justify proceeding with the project, a developer would be most interested in
estimating a:
capitalization rate.
risk premium.
capture rate.
risk-free rate. - CORRECT ANSWER - capture rate.
The final price after reconciliation of the answers obtained from two or more approaches is
termed the:
replacement value.
final estimate of value.
final adjusted sale price.
indicated value.
market value. - CORRECT 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?
Questions and CORRECT Answers
Factors that affect housing market segmentation include all except:
household size.
household income.
household lifestyle.
household unemployment status.
household age. - CORRECT ANSWER - household unemployment status.
A popular adage in real estate is that property value is all about "location, location, location."
However, for most property types in nonresidential realms, non-locational requirements are
equally or even more important. All of the following are examples of non-locational factors
EXCEPT:
Proximity to modes of public transportation.
Nature of current tenants.
Amount of parking.
Floor plate size. - CORRECT ANSWER - Proximity to modes of public transportation.
,A very sophisticated, data intensive and statistically intensive method of examining market
segmentation is known as:
survey research.
cluster analysis.
psychographics research.
discriminant analysis.
regression analysis. - CORRECT ANSWER - psychographics research.
Since most data for a given market study is not readily available, analysts must be creative in
their use of data that they are able to obtain. The primary source for detailed household
demographic information is:
the U.S. Bureau of the Census.
not available publicly.
the Federal Reserve.
the local tax collector's office. - CORRECT ANSWER - the U.S. Bureau of the Census.
Which tool would a real estate investor use to seek to describe the human characteristics of
consumers that may have bearing on their response to products, packaging, advertising and
public relations efforts?
,Survey research.
Census data and a marker.
Psychographics.
Geographical information systems. - CORRECT ANSWER - Psychographics.
In real life, the variables involved in predicting occupancy and rental rate growth parameters are:
impossible to guess at.
easy to estimate.
easy to figure.
difficult to predict. - CORRECT ANSWER - difficult to predict.
After initial data has been collected in the market research process, the analyst should attempt to
identify the ________________________; that is, the key numbers that characterize the current
condition and trend in the market.
product characteristics
market parameters
strengths and weaknesses of the competition
segmentation characteristics - CORRECT ANSWER - market parameters
, A new residential development will face competition from other new developments, other
builders, and sales of existing homes. To determine if demand in that market segment will be
sufficient to justify proceeding with the project, a developer would be most interested in
estimating a:
capitalization rate.
risk premium.
capture rate.
risk-free rate. - CORRECT ANSWER - capture rate.
The final price after reconciliation of the answers obtained from two or more approaches is
termed the:
replacement value.
final estimate of value.
final adjusted sale price.
indicated value.
market value. - CORRECT 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?
