Practice Questions REAL Estates Attributes

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Apr 3, 2024

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Practice Questions REAL Estates Attributes Linkage attributes are very important and can increase or decrease value of a property. If the linkage attributes reduce the hassle factors, they will also reduce the value: < Feedback The correct answer is "FALSE". If linkage attributes reduce the hassle factors, they will generally increase, not decrease, the value of a property. Linkage attributes refer to how well a property is connected to other important locations and services. These can include proximity to transportation networks (like highways, bus routes, or subway lines), access to markets or resources, or closeness to certain amenities.

Perform a basic 5 attributes analysis on the following property: A suburban single-family home with energy-efficient features, in an area with recent increases in property taxes, enjoying easy access to major highways, but with a history of contamination on the property and an ongoing easement dispute. The home's value is: Feedback The correct answer is "Positively impacted by the physical and linkage attributes. Negatively affected by the legal and environmental attributes”. Physical attributes include tangible aspects of the property, such as ts structure and features. The energy-efficient features of the home are a key physical attribute that can increase its appeal and value due to the growing demand for sustainability and the potential for lower energy costs. The property's value s also positively influenced by its linkage attributes. Linkage attributes refer to the property's connectivity or proximity to essential services and infirastructure. In this case, easy access to major highways i a significant positive linkage attribute. However, the property's value is negatively affected by legal and environmental atributes. The legal attributes include the recent increase in property taxes and the ongoing easement dispute. Higher property taxes can reduce the attractiveness of a property due to the increased cost of ownership, and legal disputes can create uncertainty and potential future liabiities. The environmental attribute,in this case, is the history of contamination on the property, which can be a significant deterrent for buyers due to health concerns and the potential costs associated wiith remediation

Allof the following dynamic attributes will increase the demand and value of a piece of property except: Feedback ‘The correct answer s "Crime”. Dynamic attributes refer to aspects of a property that can change over time and can affect the property's value and demand in the market. Positive dynamic attributes, such as prestige, a waterfront view, and quality construction, can increase a property’s value and attractiveness to potential buyers or renters.

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Which of these is the appropriate income stream (space-time converted to money time) for office space? ] Feedback The correct answeris "$ /sqft / year". Office space rentis typically quoted on an annual basis per square foot. This is the standard way of expressing rental rates in the commercial real estate industry, especially for office spaces. It allows for a straightforward comparison between different properties and markets

All of the following services are part of the hard public infrastructure except: Feedback The correct answer is "Museurn’. Hard public infrastructure typically refers to the physical structures and facilities that are necessary for the functioning of a society. These include transportation systems and utiltes.

In the process of selling a large newly developed office building, which participant would be categorized within the "producers” group? ] Feedback The correct answer is "The broker faciitating the sale of the building” Inthe process of selling a large office building, the broker facilitating the sale is categorized wiithin the Producers Group. Brokers in real estate play a crucial role in the production and transaction process. They assist in marketing the property, negotiating deals, and bringing buyers and sellers together.

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The real estate marketplace group that focuses on the creation of real estateis: Feedback ‘The correct answer s "Producers'. The Producers group, in an economic context, generally includes individuals or entities that create goods or provide services that are used or consumed by others. This would include Developers (who build or create property developments), Accountants (who provide financial services), and Brokers (who facilitate transactions, such s real estate or stock transactions).

The Five Attributes Analysis includes the following: ] Feedback The correct answeris "Physical, legal/politica, linkage, dynamic, environmental” The Five Attributes Analysis includes the following: ] Feedback The correct answeris "Physical, legal/politica, linkage, dynamic, environmental”

Which of the groups below are not part of the real estate "user" group: ] Feedback The correct answer is "Developers”. Developers are not considered part of the real estate user group because their primary role. is to develop and sell or lease properties rather than use or occupy them. The real estate user group generally refers to those who directly use the space, whether for residential, commercial, or other purposes. Developers are part of the producer group.

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Aland plot with a unique shape and size is most likely to have its value influenced in what way under physical attributes? Feedback The correct answer is "Decreased value due to limited development potential.” Aland plot with a unique shape and size is more likely to face challenges in terms ofits development potential. Non-standard shapes or sizes can complicate building designs, limit the effective use of space, and potentially increase construction costs. These factors can make the plot less attractive to developers and investors, who often prefer land that can be easily and efficiently developed. As a result, such physical attributes can lead to a decrease in the value of the property.

If a company purchases a piece of land to build a seasonal theme park, how does this align with Jim Graaskamp's definition of real estate? Feedback The correct answer i "It aligns, as the land is designated for a specific activity within a set timeframe.” Inthe context of a company purchasing land to build a seasonal theme park, this aligns perfectly with Graaskamp's definition. The land is being used for a specific, profitable activity (a theme park), and this use is an integral part o the real estate's value and identity,regardless of its seasonal nature.

Private limitations to your bundle of rights include all of the following except: ] Feedback The correct answer is "Zoning” ‘The "bundle of rights™ is term in property law referring to the collection of legal ights that a property owner has in regard to their property. These include the right to use, sell, lease, enter, or give away the property, and the right to refuse to exercise any of these rights. Private limitations are restrictions placed on the use of property by non- governmental entities, such as through private contracts or legal agreements.

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The imposition of a significantly higher property tax, is likely to affect a property's value in what manner? ] Feedback The correct answer is "Decrease the value due to the additional financial burden”. The imposition of a new property tax represents an additional financial burden for property owners. This increased expense typically reduces the attractiveness of the property to potential buyers or investors, as it raises the overall cost of ownership.

utes analysis on the following property: A suburban single-family home with energy-efficient features, in an area with recent increases in property taxes, enjoying easy access to major highways, but with a history of contamination on the property and an ongoing easement dispute. The home's value i Feedback The correct answer is "Positively impacted by the physical and linkage attributes. Negatively affected by the legal and environmental atributes’ Physical attributes include tangible aspects of the property, such asits structure and features. The energy-efficient features of the home are a key physical atribute that can increase ts appeal and value due to the growing demand for sustainability and the potential for lower energy cost. The property's value s also positively influenced by its linkage attributes. Linkage attributes refer to the property's connectivity or proximity to essential services and infrastructure. In this case, easy access to major highways s a significant positive linkage attribute. However, the property's value s negatively affected by legal and environmental attributes The legal atributes include the recent increase in property taxes and the ongoing easement dispute. Higher property taxes can reduce the attractiveness of a property due. to theincreased cost of ownership, and legal disputes can create uncertainty and potential future liabilties. The environmental atribute, in this case, is the history of contamination on the property, which can be a significant deterrent for buyers due to health concerns and the potential costs associated with remediation.

Law, Leases and Politics are related to which of the Five Attributes: ] Feedback The correct answeris "Legal Attributes”.

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Practice Questions REAL Estates Attributes

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