27 Matching questions
- BUYER'S MARKET
- STRAIGHT LINE METHOD
- INTEREST RATE
- MARKET APPROACH
- PRINCIPLE OF COMPETITION
- ECONOMIC OBSOLENCES
- MARKET ANALYSIS
- BUYER'S EQUITY
- GROSS INCOME MULTIPLIER
- PRINCIPLE OF PROGRESSION
- UNEARNED INCREMENT
- LEASE FEE ESTATE
- PRINCIPLE OF CONFORMITY
- HIGHEST AND BEST USE
- VALUE IN USE
- 40 years
- a ____________________ refers to that use which will yield the maximum return at a given time.
- b To be considered comparable to the subject property, a comparable property must have been sold
a. with a conventional mortgage
b. for all cash
c. without any form of secondary financing
d. for credit
e. in an arm's length transaction
- c The following are determinants of value in appraisals of realty, except:
c. purchasing value
- d In the computation of depreciation of real properties, the method that is widely used by practitioners is the
- e ___________ exist when there are more properties for sale in a particular area than there are buyers.
- f 21. Three of the following factors create value in real estate. Which one does not create value?
- g Several houses valued at P1,000,000.00 and P2,000,000.00 were built in an area where an existing house valued at P3,000,000.00 is located. As a result, the value of the latter decreased. The real estate principle of value that applies to this situation is called the principle of _______________________.
- h 10. An appraisal technique in which comparative estimates are made between prices paid in actual transactions and the current listings IS ______________________.
- i ______________________ is a loss in value of a property because of external factors or events.
- j The study or current supply and demand conditions in a particular area for a specific type of property is ________________.
- k The difference between contract price and loanable amount is ____________________.
- l The income approach to value is an application of the principle of:
- m A person who determines the land value is called a real estate ___________________.
- n The principle of value which states that the value of a property tends to be enhanced when there is reasonable homogeneity in use:
- o The right of an owner-lessor to receive the contract rent and reversion of the property at the end of the lease is called
- p The increase in value of real estate without any expense of the owner is:
- q The ratio that expresses the relation between gross income and sales price of a property is ___________________.
- r _____________________ refers to the use an object is put to, the services it renders and wants it satisfies.
- s In the cost approach to value, physical deterioration is estimated by the formula:
a) Economic life divided by chronological age
b) Chronological life divided by economic life
c) Economic life divided by effective age
d) Effective age divided by economic life
- t The use of borrowed funds to increase purchasing power is ideally to increase the
profitability of an investment is ___________________.
- u The principle holds that when two or more commodities with substantially the same utility are available, the one with the lowest price receives the greatest demands and widest distribution
- v A building is depreciated at 2.5% per year on a straight line basis. What is the estimated useful life of the building? _________
- w Income approach for an appraisal would be most widely used
a. on a newly opened subdivision
b. on commercial and investment property rented by tenants
c. on property heavily mortgage
d. on property heavily insured e. none of the above
- x The rate of return earned by an investor which does not include allowance for capital recovery is __________________.
- y An appraisal principle which holds that the value of property tends to be enhanced by association with superior properties is:
- z Using the 4-3-2-1 rule (depth rule), a 5 hectare belonging to different owners was sold for P10,000,000.00, what is the share of lot owners owning the first quarter abutting the road? ___________________________.
- aa In the economic sense, ______________ refers to the displacement of the present residents with people of lower economic status or different cultural or social background.