Part 2

Question 1

Allocation

Answer 1

distribution of something

Question 2

Cost Approach

Answer 2

reflects market thinking by recognizing that participants in the marketplace relate value to cost. is a real estate valuation method that surmises that the price a buyer should pay for a piece of property should equal the cost to build an equivalent building. In cost approach appraisal, the market price for the property is equal to the cost of land plus cost of construction, less depreciation.

Question 3

Extraction

Answer 3

Sales price MINUS contributory value of the improvements = extracted value Of land

Question 4

Income capitalization approach

Answer 4

measures the present value of the future benefits derived from the property owner ship.

Question 5

Sales comparison approach

Answer 5

Preferred method for land valuation, owner occupied methods. The appraiser derives a value indication by comparing the subject property to similar properties that have sold recently.