Q1. Real estate appraisers generally distinguish among the concepts of market value, investment value, and transaction value. Which of the following statements best describes the concept of market value? A) B) It is an estimate of the most probable selling price of a property in a competitive market. It is the value a particular investor places on a property. C) It is the price we observe when a property is sold. D) It is the maximum amount that a seller would be willing to accept. Q2. When employing the sales comparison approach, appraisers must consider numerous adjustments to convert each comparable sale transaction into an approximation of the subject property. Adjustments are divided into two groups: transactional adjustments and property adjustments. All of the following are transactional adjustments EXCEPT: A. financing terms b. market conditions c. conditions sale d. location Q3. The cost approach to valuation assumes the market value of a new building is similar to the cost of constructing it today. Which of the following terms refers to the expenditure required to construct a building of equal utility using modern construction techniques, materials, and design that eliminates outdated aspects of the structure? c. fixed cost d. variable cost a. reproduction cost b. replacement cost
Q1. Real estate appraisers generally distinguish among the concepts of market value, investment value, and transaction value. Which of the following statements best describes the concept of market value? A) B) It is an estimate of the most probable selling price of a property in a competitive market. It is the value a particular investor places on a property. C) It is the price we observe when a property is sold. D) It is the maximum amount that a seller would be willing to accept. Q2. When employing the sales comparison approach, appraisers must consider numerous adjustments to convert each comparable sale transaction into an approximation of the subject property. Adjustments are divided into two groups: transactional adjustments and property adjustments. All of the following are transactional adjustments EXCEPT: A. financing terms b. market conditions c. conditions sale d. location Q3. The cost approach to valuation assumes the market value of a new building is similar to the cost of constructing it today. Which of the following terms refers to the expenditure required to construct a building of equal utility using modern construction techniques, materials, and design that eliminates outdated aspects of the structure? c. fixed cost d. variable cost a. reproduction cost b. replacement cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Q1. Real estate appraisers generally distinguish among the concepts of market value, investment value, and
transaction value. Which of the following statements best describes the concept of market value?
A)
B)
It is an estimate of the most probable selling price of a property in a competitive market.
It is the value a particular investor places on a property.
C) It is the price we observe when a property is sold.
D) It is the maximum amount that a seller would be willing to accept.
Q2. When employing the sales comparison approach, appraisers must consider numerous adjustments to convert
each comparable sale transaction into an approximation of the subject property. Adjustments are divided into two
groups: transactional adjustments and property adjustments. All of the following are transactional adjustments
EXCEPT:
A. financing terms
Q3. The cost approach to valuation assumes the market value of a new building is similar to the cost of constructing
it today. Which of the following terms refers to the expenditure required to construct a building of equal utility using
modern construction techniques, materials, and design that eliminates outdated aspects of the structure?
c. fixed cost d. variable cost
a. reproduction cost
b. replacement cost
b. market conditions
c. conditions sale
d. location
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