Real Estate Market

Other relevant conditions equal, growth in the number of households with effective purchasing power in a market tends to have which effect?

A small group of buyers in a market looks for specialized features that are uncommon in the broader housing supply. What term describes this group?

In market area analysis, what characteristic distinguishes a district from a neighborhood?

A neighborhood analysis should include all of the following EXCEPT:

A site legally permits at most 40 units and can physically support 50. Supported comparable analyses find 30 and 40 units financially feasible, with 40 units producing the highest net land value after costs, timing and required return. Which use is maximally productive among these alternatives?

Under USPAP Standards Rule 1-3(a), which item must an appraiser identify and analyze when necessary for credible results in a market value assignment?

Market evidence isolates a subject value loss from off-site landfill odors. Which listed cause is an external-obsolescence influence?

How does the Fannie Mae Selling Guide define a neighborhood?

Several homes in a neighborhood are vacant and boarded up. Which market force does Fannie Mae classify this as?

Infrastructure investment such as a new interchange typically affects nearby land by:

A city raises property tax rates and tightens building regulations. Which market force does Fannie Mae classify these as?

An appraiser believes, without market evidence, that a nearby group home lowers values. What does Fannie Mae require?

A property is purchased for $1,500,000 with a loan of $1,200,000. Using the purchase price as the value, what is the loan-to-value ratio, as a percentage to one decimal?

Which three categories are used to report the supply of properties in a Fannie Mae neighborhood section?

An appraiser is asked for a retrospective value opinion as of three years ago. When must the appraiser meet the Competency Rule?

Can mixed land uses in a residential neighborhood ever enhance home values, according to Fannie Mae?

A supported transaction price for an operating business includes its real estate, equipment and identified business-related intangible assets. An assignment requests only the real-property component’s value. What is the appropriate analytical treatment?

The principle of anticipation in real estate valuation states that:

In Mueller’s occupancy-based four-phase real-estate cycle framework, which phase describes falling occupancy as continuing supply growth overtakes demand?

When occupancy and lease patterns are relevant to a residential assignment, how should an appraiser use that information?

Which proposed use cannot pass the legal-permissibility screen without evidence that the necessary permission is reasonably probable?

A lender pressures for a quick, cheap appraisal on a federally related loan. What do the Interagency Guidelines say about cost and speed?

Which highest-and-best-use criterion addresses whether a proposed use is allowed by zoning and applicable legal restrictions?

In a defined competitive market segment used for neighborhood supply analysis, active comparable listings totaled 280 at the start of the period and 210 at the end of the period (same listing criteria). What is the indicated percent change in listing inventory over that period?

In the neighborhood life cycle, which stage is marked by relatively stable values and little new construction?

A subdivision has 180 current active listings and 35 closed sales in the latest three-month quarter. Using only that quarter’s average monthly sales pace, what months of inventory are indicated? Round to one decimal place.

Which conditions does the market value concept presuppose?

Which principle is described as closely related to the economic concept of opportunity cost?

An improved property’s highest and best use as improved analysis might conclude which of the following?

Which statement about highest and best use as vacant and as improved is correct?

Why is the concept of neighborhood so important in appraisal?

A buyer pays for a house’s doors and plumbing fixtures, which will be removed from the premises for use in another building. The price expected for such items is best described as:

Under the market value definition used by appraisers, what must the appraiser do with each sale price used as an indicator?

Land is partway through being developed into a residential subdivision. As of the effective date, it should be valued according to what?

Under USPAP Standards Rule 1-3(b), what must the appraiser analyze to support a highest and best use conclusion?

When completing the One-Unit Housing Trends in a Fannie Mae report, which properties should the trends reflect?

An office market segment has 50,000 square feet available. Absorption has been stable at 120,000 square feet per year, and no new or returning supply is expected. At that pace, how long will it take to absorb the available space?

A luxury segment has 45 active listings. Its latest quarter averaged one sale per month. Using that latest-quarter pace, what months of inventory are indicated?

Market data show prices rising at a simple rate of 2% per month, without compounding. A cash-equivalent comparable sold for $475,000 three months before the effective date, and all other relevant factors match the subject. What is the time-adjusted price of the comparable?

A purpose-built fire station has specialized apparatus bays and operational facilities with limited utility for alternative occupants. Which term best describes those specialized design characteristics?

A verified rental-market series excludes seasonal and uninhabitable units. Its available vacancy rate persistently rises to 25%, well above that segment’s supported historical equilibrium, with no measurement change. What concern should be investigated first?

Which set contains relevant demand-side influences for a residential market analysis?

A property's continued use would produce stabilized NOI of $150,000, and conversion would produce NOI of $200,000. Both are capitalized at a 9% direct capitalization rate on the same risk basis. Conversion alone requires an immediate $800,000 payment, and all other costs, risk and timing are already reflected in these figures. Which alternative has the higher net value?

How can a long approval/construction lag contribute to overbuilding?

A consistent market of individually sold comparable units recorded 600 closed sales in 12 months and has 150 active listings. What months-of-inventory statistic is indicated, and what does it establish about one listing unsold after four months?

An eight-unit apartment building was built legally, but the site has since been rezoned to allow at most four units; the building may remain as a nonconforming use. It is worth $1,300,000 as improved, while the land as though vacant under current zoning is worth $420,000. Which statement about its highest and best use is correct?

A vacant site can legally and physically hold either a medical office building or a small retail center. Both are financially feasible and, on a risk-adjusted basis, would produce the same land value. How should the highest and best use conclusion treat them?

An appraiser is valuing an older single-purpose warehouse in an area where demand for that type of space has fallen. Market participants indicate that no one would build a replacement if it were destroyed, because a new one could not be sold for its cost. How does the principle of substitution bear on the cost approach here?

An office building's fee simple market value is $2,000,000. It is leased to a reliable tenant whose contract rent exceeds market rent by $30,000 per year for the remaining 6 years; the present value of that excess rent at a market discount rate is $150,000. What is the market value of the leased fee interest?

An appraiser must value the fee simple interest in an owner-occupied warehouse. The best comparable sold subject to a long lease whose contract rent is well below current market rent. Before relying on that sale, which adjustment for property rights conveyed is indicated?