| 31. | Of the following alternative projects, one represents the highest and best use of particular site being analyzed. Select the use that returns the greatest annual net income to the land after deducting a 10% return to the building cost. Use Building Cost Annual Net Income Office Building $500,000 $ 76,000 Shopping Center $700,000 $ 98,000 Apartment $800,000 $104,000 | | | | A: Office building | | | | B: Shopping center | | | | C: Apartment | | | | D: None of the above | |
| |
| 32. | Real estate supply factors include all of the following except: | | | | A: population | | | | B: the volume of new construction | | | | C: availability of vacant land | | | | D: the housing supply | |
| |
| 33. | The principle of increasing and decreasing returns says that maximum value results from adding to the agents of production: | | | | A: as long as you can afford to so it | | | | B: to meet the competition | | | | C: until they are in balance | | | | D: as long as the total dollar income increases | |
| |
| 34. | These monthly average single-family home prices were recently published by the local real estate association for the subject neighborhood: April $170,000 July $174,000 October $180,500 May $171,700 August $176,000 June $173,500 September $178,750 If your date of value is November, how much total time adjustment would be indicated for a June sale in this neighborhood? (Hint: Apply the April-to-October time trend to your value date.) | | | | A: 4% | | | | B: 1% | | | | C: 2% | | | | D: 5% | |
| |
| 35. | By the cost approach, estimate the value of a 40-year-old, 2,000 square foot house, based on the following: House replacement cost $ 80/SF Garage cost (400 square feet) $ 30/SF Patio and yard improvements cost $ 15,000 Physical deterioration $ 27,000 Functional obsolescence (poor floor plan) $ 20,000 Land value from comparable sales $100,000 As indicated by the cost approach, the value of the described property is: | | | | A: $260,000 | | | | B: $287,000 | | | | C: $200,000 | | | | D: $240,000 | |
