quiz 2 solution

quiz 2 solution - Spring 2007 University of Colorado at...

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Spring 2007 University of Colorado at Boulder Leeds School of Business Real Estate 3000: Principles of Real Estate Practice Quiz 2 30 questions, 1 point per question D 1. What is the term describing a property's most probable selling price, assuming “normal” sales conditions? A) investment value B) perfect value C) competitive value D) market value A 2. The three conventional approaches to estimating market value of real estate EXCLUDE the A) court house approach. B) income approach. C) sales comparison approach. D) cost approach. A 3. When we use the sales comparison approach to value properties, we need to do property adjustments, which adjust for all the following except ___. A) financing terms B) location C) square feet D) construction quality Use the following information to answer questions 4 to 7 Market value Size Near highway Quality Subject ? 2,000 Yes Good Comparable A $330,000 3,000 No Good Comparable B $280,000 3,000 No Average Comparable C $250,000 3,000 Yes Average Comparable D $280,000 2,000 No Good D 4. By comparing comparables A and B, the value difference caused by the quality difference (good versus average) is A) $20,000 B) $30,000
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C) $40,000 D) $50,000 B 5. By comparing comparables B and C, the value difference caused by the distance to free ways (adjacent to versus not adjacent to a free way) is A) $20,000 B) $30,000 C) $40,000 D) $50,000 D 6. By comparing comparables A and D, the value difference caused by the different square footage (3,000 square feet versus 2,000 square feet) is A) $20,000 B) $30,000 C) $40,000 D) $50,000 C 7. Based on your answers to questions 4 to 7 and using the sales comparison approach, starting with any of the comparables, the appraisal value for the subject property now is (you will get the same answer by choosing any of the comparables as your staring point) A) $200,000 B) $220,000 C)
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This note was uploaded on 04/23/2008 for the course REAL 3000 taught by Professor Peng,liang during the Spring '08 term at Colorado.

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quiz 2 solution - Spring 2007 University of Colorado at...

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