Highest and Best Use - II Flashcards by Veronika Dvorak

Important supply factors include _____________trends relating to the current economy.
- Historic
- Future
- Both historic and future
- Secondary

Both historic and future

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Which Principle is also known marginal productivity?
- Surplus Productivity
- Conformity
- Competition
- Contribution

Contribution

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The extent to which individual data values have departed from the mean is the ________________.
- Measure of dispersion
- Deviation
- Average range
- Range

Measure of dispersion

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The application of mathematical and statistical techniques to economic data and problems is ___________.
- Physcographics
- Econometrics
- Spotting process
- Economic base analysis

Econometrics

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A market analysis studies supply and demand for ______________.
- A neighborhood
- A market area
- A specific property
- A property type

A specific property

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Part of the definition of Highest and Best Use says that it is the “use of ____________________ ……”
- Vacant land
- An improved property
- Vacant land or an improved property
- Integrated property

Vacant land or an improved property

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The highest and best use of the land, as vacant, determines the land value in the ________________.
- Sales Comparison Approach
- Residual Approaches
- Cost Approach
- GRM Approach

Cost Approach

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A subject’s capture rate is calculated as a ___________.
- Ratio
- Lump sum
- Capitalized figure
- Pro rata share

Pro rata share

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Identifying the competing and complementary properties for a specific property is called Market _____________.
- Delineation
- Selection
- Distinction
- Segmentation

Delineation

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In a market value appraisal, the property ___________ valued under its interim use.
- Should be
- Should not be
- May be
- Its up to the appraiser

Should not be

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Development proposals should be analyzed objectively. Many concepts come from architects or land planners and are focused more on __________ than economic issues.
- Design
- Utility
- Physical issues
- Social issues

Design

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Households and household size breakdown, average household income and disposable income and Trade area disposable income are important factors in the demand analysis for ____________ properties.
- Apartment
- Retail
- Industrial
- Condominium

Retail

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The square root of the variance, which measures the extent of the values within the data set is the ______________.
- Standard deviation
- Average Deviation
- Squared Deviation
- Standard error of the mean

Standard deviation

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Which of these is a type of market condition study?
- Feasibility Analysis
- Investment Analysis
- Economic Base Analysis
- Inferred Analysis

Economic Base Analysis

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Local authorities base their zoning decisions on all of these reasons, EXCEPT for _______________.
- The needs of the community
- The best interests of the property owner
- Regional zoning
- Their own personal preferences and biases

Regional zoning

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A _______________ analysis often addresses the time required to absorb a particular real estate product in the marketplace at a certain price or rent level.
Marketability
Feasibility
Functional
Absorption

Marketability

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__________________ creates an equity or debt instrument for the purpose of owning a tangible asset.
- Securitization
- A mortgage
- A bond
- A pledge

Securitization

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A _________ distribution uses both qualitative and quantitative data placed in a table that summarizes groups of data and observations divided into specific classes and the number of occurrences in each class.
- Staged
- Frequency
- Combination
- Tiered

Frequency

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In an appraisal, in which step of the scientific method is the implementation of a plan to collect and analyze data which determines the approaches necessary?
- Analysis
- Observation
- Prediction
- Formulation

Prediction

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Historical growth and absorption data are analyzed as part of which step in the Six-Step Process?
-Demand Analysis
-Supply analysis
-Market Delineation
-Define the Product

**Demand Analysis”

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______________ measurement includes nominal data with values from the highest to the lowest.
Interval
Ratio
Ordinal
Nominal

Ordinal

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Which is NOT one of the steps in the scientific method?
Observation
Formulation
Verification
Prediction

Verification

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All of these reasons could cause a property to become legally non-conforming, EXCEPT for _______________ .
Zoning changes
Code ordinance changes
Deed restrictions
Partial taking under eminent domain

Deed restriction

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You took photographs of a subject property and then drove past and photographed multiple comparables sales. What kind of data is that?
General
Primary
Secondary
Tertiary

Primary

NCREIF members have a significant involvement in ___________real estate investments. Pension fund Insurance Company Foreign Apartment

Pension Fund

In a __________ analysis the appraiser utilizes capitalization rates for specific property types within the subject market area to forecast the estimated value of the subject. Inferred Feasibility Statistical Fundamental

Fundamental

An interim use is until a property is ready for its ______________ highest and best use. Current Predicted Eventual future Pending

Eventual Future

Simply extending the historic trend beyond the present to project future demand is ______________________ . Standard practice Usually acceptable Not acceptable Risky

Not acceptable

__________ data relates to information that considers the effects of all four great forces. General Specific Property Primary

General

The focus of Level __ analysis is to demonstrate demand for the property type based on trends in the area and general development patterns. A D B C

Identifying the economic base industries of the metropolitan area is part of ______________. Market segmentation Market development Market area delineation Delineating market study area(s)

Market area delineation

Part of the definition of Highest and Best Use says that it is the “reasonably probable and ________ use……” Possible Legal Likely Consistent

Legal

The _______________________ provides yearly estimates of demographic, housing, social, and economic characteristics for all population groups of at least 65,000 people. American Fact Finder Am The _______________________ provides yearly estimates of demographic, housing, social, and economic characteristics for all population groups of at least 65,000 people. American Fact Finder American Community Survey BLS American Community Survey BLS American Census Update

American Community Survey

Which is not a type of office building? Multi-tenant High rise Government Class D

Class D

Which is not a type of office building? Multi-tenant High rise Government Class D

Class D

The Principle of Consistent Use says that the land and improvements need to be valued based on ___________ . Compatibility The same use Similar uses A future use

The same use

A survey of the industries and businesses that generate employment and income in a community as well as the rate of population growth and levels of income is defined as ____________________. Market analysis Marketability analysis Econometrics Economic base analysis

Economic Base Analysis

Which of these is a characteristic of a market segment? Heterogeneous Indistinct from other segments Consistent within the segment Responds differently to a market stimulus

Consistent within the segment

A _______________ analysis often addresses the time required to absorb a particular real estate product in the marketplace at a certain price or rent level. Marketability Feasibility Functional Absorption

Marketability

The subject property is not appraised within the Level __ analysis, but is one of many properties within the general market area affected by supply and demand factors. C B D A

The study of consumer behaviors within a market, segmenting by factors such as level of education, income, occupation, familial status, age, sex, race, etc. is known as ______________. Inferred analysis Econometrics Psychographics Microeconomics

Psychographics

Part of the definition of Highest and Best Use says that it is the use “that is ______________ supported……” Credibly Economically Appropriately Physically

Appropriately

An extraordinary assumption is used to assume otherwise uncertain information as ________________. Fact Possible Value Reasonably certain

Fact

If the data is describing a characteristic within a population, it is a _______________. (Chapter 3, Data Analysis) Statistic Sample Parameter Variant

Parameter

A capture rate applies to property that is _____________. Sold or leased Valued Sold Leased

Sold or Leased

__________________ real estate professionals in particular can benefit from the Census information. Commercial Residential Land Condominium

Commercial

Frequency

Depending upon the strength of the data, and the intended use of the appraisal, the highest and best use conclusion can be __________________________. Primary or secondary General or Specific General or secondary Specific or ordinary

General or specific

_______________ analysis uses technical statistics to forecast changes in future value by analyzing historical macroeconomic information. Fundemental Inferred Descriptive Feasibility

Inferred

______________ developed probability theories which predict future probabilities from past events. Thomas Paine Thomas Bayes Thomas Edison Thomas Jefferson

Bayes

A _______________ relates to a specific product type or development project within a defined market area based on the four factors that create value. Marketability analysis Comprehensive analysis Feasibility analysis Market analysis

Marketability Analysis

The two components of the Capital Market are ______________. Supply and demand Debt and equity Debt and profit Bonds and mortgages

Debt and equity

Marketability

Market _____________ identifies specific boundaries in which the subject property is located, along with the comparable sales, rentals, and land sales. Aggregation Segmentation Modeling Delineation

Delineation

A trend analysis is also known as ____________ analysis? Inferential Descriptive Risk Inferred

Inferred

"Stealing" occupants from existing facilities is a ______________. Discount rate Capture rate Misdemeanor Vacancy allowance

Capture rate

Which of these is a question that could be asked to help determine supply? How much space is currently being absorbed in the competitive market area? How much space, at what price, has historically been absorbed in the competitive market area? Is current absorption influenced by any form of concessions? How much space is under construction in the competitive market area?

How much space is under construction in the competitive market area?

The primary purpose of the Census is to provide population counts used in ______________________________. Statistical analysis Apportioning seats in the House of Representatives Local assessment Helping appraisers

Apportioning seats in the House of Representatives