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REE 4103 Exam #1 Questions with 100% correct answers | verified | latest update 2024
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REE 4103 Exam #1___________ value appraisals often involve limited-market properties, such as large
manufacturing plants, railroad sidings, and market research and development properties
- ANS-Use Value
_______________ is/are created by the anticipation of benefits to be derived in the
future - ANS-Value
________________ is fundamental to the dynamics of supply and demand in a
free-enterprise, profit-maximizing economic system - ANS-Competition
A buyer invests in a small strip mall because she believes the property will net $25,000
per year. This is an example of - ANS-Anticipation
A casement window is - ANS-A vertically hinged window that opens like a door
A deed of trust is - ANS-A document that gives a third party the deed until the mortgage
loan is paid off
A finished real estate product is created by combining - ANS-Land, labor, capital, and
entrepreneurial coordination
A full section of land usually - ANS-Includes 27,878,400 square feet
A good's capacity to satisfy human desires or needs is known as - ANS-Utility
A land contract, also known as a conditional sales contract or an installment sales
contract is - ANS-A sale of real estate with the seller financing the sale but retaining the
deed until the loan is paid off
A large residential lot is an ideal location for industrial development, but the zoning
imposed by the local government ensures that the lot will continue to be used for
residential development. The power of the local government to zone property is through
its: - ANS-Police power
A lease - ANS-Conveys the right of occupancy to another
,A leased fee interest is - ANS-The ownership interest of the landlord when a lease is in
effect
A legally nonconforming use is - ANS-A use that was legally established and maintained
but no longer conforms to existing zoning
A market analysis is not used in which of the following approaches to value -
ANS-Private assessment approach
A market area characterized by one predominant land use—e.g., apartment,
commercial, industrial, agricultural is known as - ANS-A district
A mortgage is a - ANS-Pledge of collateral for a real estate loan
A movie theatre without stadium seating may be experiencing what? - ANS-Functional
obsolescence
A neighborhood is - ANS-A group of complementary land uses
A new two-family home is constructed in a neighborhood of new, three-family homes on
a lot that could support a three-family home. Market research and the application of the
sales comparison approach to value indicate an appraised value significantly lower than
the sum of the land and building costs. What principle of value was violated? -
ANS-Balance
A one-unit home owner who builds a new and unique structure will commonly find that -
ANS-Generally, fewer people desire unique structures
A park that has just been built in your neighborhood would generally be considered a
________________ - ANS-Positive Externality
A plot of land, 100 x 200 ft., along an interstate freeway, is situated 12 miles north of the
central business district of a city with a population approaching 1 million. Which of the
following would be the highest and best use of the land? - ANS-There is not enough
information to make a determination
A project with units that are limited both vertically and horizontally and have a
percentage ownership in the common elements is a - ANS-Condominium
, A property includes a one-unit residence on the southeast corner of a five-acre parcel
with 467 feet of frontage on each of two roads. The house alone (without land) would be
worth $100,000. It was never platted and there are no deed restrictions. The local
zoning ordinance only requires two acres with 200 feet of road frontage. The market for
houses with up to five acres is good. Excess land, not required by zoning, sells for only
$3,000 per acre. A buildable pad in this market is worth $30,000. The site is far enough
from the northern property line to allow an almost perfect split of the parcel in half. What
is the highest and best use of the site as though vacant and as improved? -
ANS-Highest and best use as though vacant=
Two parcels with +/-2.5 acres each.
Highest and best use as improved=
Leave the house and sell off the other site
A property's immediate environment is - ANS-A neighborhood
A purchaser's wish for an item to satisfy human needs or individual wants beyond
essential life-support needs - ANS-Desire
A real estate market is - ANS-A group of individuals or firms that are in contact with one
another for the purpose of conducting real estate transactions
A real property interest held by a lessee and conveying the right of use and occupancy
for a stated term under certain conditions is called the - ANS-Leasehold estate
A rectangular site measures 125 feet (frontage) by 256 feet (depth), of which 26 feet is
in the public right of way. *What is the gross and net site area?* - ANS-32,000 square
feet gross area and 28,750 square feet net area
A site is - ANS-Land that is improved so that it is ready to be used for a specific purpose
A small building used to manufacture saw blades is an example of - ANS-Industrial land
use
A small town (pop. 2,500) has only two home builders. These two companies have each
been building about five houses per year for the last 15 years. The subcontractors they
used all came from neighboring towns, but occasionally there would be a need to import
a tradesperson from father away. The state recently decided to build a new law
enforcement academy in town, which would cause an influx of about 500 people and an
increase of about 200 households. There is almost no excess capacity of residences
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