3. Answer the following questions (30 points-1.5 points each) I. What are the most common forms of compensation for developers? 2. Why is it important for real estate players to stay well informed about market trends? 3. What is the difference between variable and fixed expenses? Give two examples of each type of expenses. 4. Why development of a mixed-use project might be more difficult than development of a single property type? What are the two methods analysts use to conduct real estate market research, and what are the main differences between the two methods? Describe the back-of-the-envelope pro forma and what it is used for. Discuss the many roles a developer must play in each stage of the eight stages of the real estate development. 5. 6. 7. 8. Why are appraisers involved before, during, and at project completion? 9. Define and describe at least 4 factors that contribute to the value of a property. 10. Explain why sales approach is not likely to be useful in estimating the value of a new type of buildings 11. Why debt service and income taxes are not included in the calculation of the Net Operating Income of a property NOI 12. What is the main difference between the transactional adjustment and the property adjustment