Valuation and market analysis

Question 1

A competitive market analysis is MOST often used for

Answer 1

setting a listing price.

Question 2

All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT the

Answer 2

straight-line method.

Question 3

A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of

Answer 3

anticipation.

Question 4

A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggest

Answer 4

a competitive market analysis to determine the property’s value

Question 5

A competitive market analysis takes into consideration

Answer 5

square footage of the subject property.

Question 6

When compiling a competitive market analysis, a broker would look for comparable properties that

Answer 6

were located near the property being listed.