Highest and Best Use Exam (2025-2026)
Version with Focused Questions and
Answers / Already Graded A+
A process for examining the demand for and supply of a property
type and the geographic market area for that property type is called
Market analysis
is a set of arrangements in which many buyers and sellers are
brought together through the price mechanism
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
Highest and best use
There is no tangible proof that an actual market exists now, or has
ever existed, without
Absorption
is the value that answers the question: "Is the product freely
available?"
Scarcity
is the value that answers the question: "If users want the product, can
they afford it?"
Effective buying power
is the value that answers the question: "Does anyone want the
product?"
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
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.
True
It cannot be overstated that every assignment to develop an opinion
of the value of real property requires market analysis.
True
The principle of supply and demand recognizes that market actions
have this.
Consequences
The downward-sloping demand curve indicates that as the price
decreases, demand for space will
Increase
This process focuses on general market information about a property
type or a defined area.
Market study
A marketability study investigates the market conditions in a specific
location for
A specific property
Fundamental demand analysis allows the analyst to make a(n)
_______ of future market activity.
Forecast
The two types of market analysis characterized by how demand is
measured are inferred and
Fundamental
The three broad categories of the fundamental generators of demand
are
Employment, Population, and Income
, A prediction of the future that is an extension of current and historic
trends
Projection
A change in Employment leads to a change in Office jobs which leads
to a change in demand for
Office Space
A change in Employment leads to a change in Industrial jobs which
leads to a change in demand for _
Industrial Space
This is a characteristic of which marketability study: Includes all
existing, under-construction, and planned properties in the defined
market area (not just direct competition).
Level C Marketability Study
This is a characteristic of which marketability study: Measures
demand over a defined market area by fundamental demand analysis.
Level C Marketability Study
What is the first step in the six-step process?
Analyze property productivity.
An analysis of a property's linkages is performed in which step of the
six-step process?
Analyze property productivity.
is the comparison of the subject property with the market it serves
over time and across space; the expected percentage of the total
demand or residual demand that a specific property can expect to
attract now and in the future; short-term capture is referred to as
absorption; long-term capture is referred to as share of the market.
Subject Capture
Which ingredient distinguishes a potential market from an actual
market?
Absorption
is the study of the various aspects of the competitive properties. It
includes the survey of the competition, new construction, demolition,
conversion, and vacancy.
Version with Focused Questions and
Answers / Already Graded A+
A process for examining the demand for and supply of a property
type and the geographic market area for that property type is called
Market analysis
is a set of arrangements in which many buyers and sellers are
brought together through the price mechanism
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
Highest and best use
There is no tangible proof that an actual market exists now, or has
ever existed, without
Absorption
is the value that answers the question: "Is the product freely
available?"
Scarcity
is the value that answers the question: "If users want the product, can
they afford it?"
Effective buying power
is the value that answers the question: "Does anyone want the
product?"
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
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.
True
It cannot be overstated that every assignment to develop an opinion
of the value of real property requires market analysis.
True
The principle of supply and demand recognizes that market actions
have this.
Consequences
The downward-sloping demand curve indicates that as the price
decreases, demand for space will
Increase
This process focuses on general market information about a property
type or a defined area.
Market study
A marketability study investigates the market conditions in a specific
location for
A specific property
Fundamental demand analysis allows the analyst to make a(n)
_______ of future market activity.
Forecast
The two types of market analysis characterized by how demand is
measured are inferred and
Fundamental
The three broad categories of the fundamental generators of demand
are
Employment, Population, and Income
, A prediction of the future that is an extension of current and historic
trends
Projection
A change in Employment leads to a change in Office jobs which leads
to a change in demand for
Office Space
A change in Employment leads to a change in Industrial jobs which
leads to a change in demand for _
Industrial Space
This is a characteristic of which marketability study: Includes all
existing, under-construction, and planned properties in the defined
market area (not just direct competition).
Level C Marketability Study
This is a characteristic of which marketability study: Measures
demand over a defined market area by fundamental demand analysis.
Level C Marketability Study
What is the first step in the six-step process?
Analyze property productivity.
An analysis of a property's linkages is performed in which step of the
six-step process?
Analyze property productivity.
is the comparison of the subject property with the market it serves
over time and across space; the expected percentage of the total
demand or residual demand that a specific property can expect to
attract now and in the future; short-term capture is referred to as
absorption; long-term capture is referred to as share of the market.
Subject Capture
Which ingredient distinguishes a potential market from an actual
market?
Absorption
is the study of the various aspects of the competitive properties. It
includes the survey of the competition, new construction, demolition,
conversion, and vacancy.
