Q1a. Real estate can be used in three different fundamental ways. List them and provide definitions. Q1b. Real estate assets and markets are unique when compared with other assets or markets. Discuss the primary ways that real estate markets are different from the markets for other assets that trade in well-developed public markets (Chapter 1, Real Estate). [8+12=20] Q2a.Define the term ad valorem tax. What are the three criticisms of the property taxes of local government? Elaborate. Q2b. A property tax owner owes eight mills in school taxes, 10 mills in city taxes, and five mills in county taxes. He/she qualifies for a $25,000 homestead exemption. How much would he/she owe on a property assessed at $80,000? (Chapter 4, Government Control) [10+10=20] Q3. You have heard the saying real estate is about location, location and location. Real estate market analysis is a very important component in real estate development projects. What are the various steps in real estate marketing and how does geographical information system play a crucial role in the success of land development projects? (Read Week 4, Analyze This, and Dr. Location). [10+10=20] Q4. Define and differentiate between market value, investment value and transaction prices. In addition, explain the process of appraisal and market valuation of real estate assets. Explain. (Chapter 7, pages 163-166). [8+12=20]

2 | P a g e Q5. A property comparable to the single-family home you are appraising sold three months ago for $380,500. You have determined that the adjustments required for differences in the comparable and subject property are as follows:

Transaction characteristics Property rights conveyed None Financing terms None Conditions of sale None Expenditures immed. after purchase +3258 Market conditions +0.6% /month, not compounded Property characteristics Location +3% Physical characteristics: -4% Economics characteristics N.A. Use None Non-realty components found -7000 in comparable