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Name: Homework 6

horizontal rule

Instructions:  

horizontal rule

Question 1   Multiple Choice (1 points)
  Question: The highest and best use of an investment property is the use that maximizes its
 
    growth potential.
capital expenditures.
net operating income attributable to the land.
operating expense ratio.
 

 
Question 2   Multiple Choice (1 points)
  Question: Which of the following is an example of interim highest and best use?
 
    An improved property is located in an area zoned R-1 and is being used as a single family residence until a zoning variance change can be obtained to convert the property to an apartment building.
A single family residence is near the end of its economic life and is located on a site that is zoned for commercial use.
A single family residence has just been completed on a site that is zoned for commercial use.
An appraiser projects a property's highest and best use before physically inspecting the site.
 

 
Question 3   Multiple Choice (1 points)
  Question: A property that contains super-adequacies would be an example of the law of:
 
    substitution.
regression.
increasing returns.
decreasing returns.
 

 
Question 4   Multiple Choice (1 points)
  Question: Which of the following principles states that when several similar houses are for sale at the same time, the one with the lowest price attracts the greatest demand and widest interest?
 
    Substitution
Competition
Balance
Conformity
 

 
Question 5   Multiple Choice (1 points)
  Question: In performing a highest and best use assignment, the appraiser must do all but which of the following:
 
    identify all of the alternative uses of the property
identify both the known and anticipated constraints to each alternative
identify the resources actually or expected to be available to each alternative
all of the above are done in a highest and best use assignment