UNIT 16 Flashcards


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created 3 months ago by cshaw98
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real estate
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1

1.
Which appraisal method uses a rate of investment return?

A. Sales comparison approach
B. Cost approach
C. Income approach
D. Gross income multiplier method

2

2.
The characteristics of value include which of the following?

A. Competition
B. Scarcity
C. Anticipation
D. Balance

3

3.
There are two vacant adjacent lots in an area zoned for commercial use, each worth approximately $50,000. If their owner sells them as a single lot, however, the combined parcel will be worth $120,000. What principle does this illustrate?

A. Substitution
B. Plottage
C. Regression
D. Progression

4

4.
The amount of money a property is likely to command in the marketplace is its

A. intrinsic value.
B. market value.
C. subjective value.
D. book value.

5

5.
A homeowner constructs a five-bedroom brick house with an indoor pool in a neighborhood of modest two-bedroom and three-bedroom frame houses on narrow lots. The value of this house is MOST likely to be affected by what principle?

A. Progression
B. Assemblage
C. Change
D. Regression