BUSI 422 Read & Interact Brueggeman & Fisher Chapter 7 solutions complete answers

BUSI 422 Read & Interact Brueggeman & Fisher Chapter 7 solutions complete answers

 

A distressed property will be profitable when the net cash from sale exceeds:

 

Individual preference can cause the market value to be ______ the existing price.

 

An industry is said to be a driver industry if the location quotient is ___ 1.0.

 

To determine the ratio of sale price to monthly rental income, an appraiser uses   and prices from recent comparable properties.

 

The most obvious strategy to dealing with a distressed property is to   it.

 

If the sale of the property at auction is delayed, the investor may not be a successful   when the auction occurs.

 

Renovation costs occur during which phase?

 

Depreciation from shifting land uses is referred to as:

 

Which of the following inputs of similar properties are needed for the income approach of appraisal?

 

An appraiser values a corner lot as having $2,500 in value. The only difference between a property and its comparable is that the comparable is on a corner lot. What adjustment will the appraiser make?

 

True or false: The value of land is needed in order to use the cost approach.

 

Comparable properties are _______.

 

True or false: The sales comparison approach requires the required rate of return.

 

The three appraisal approaches are  ,  , and  .

 

The   adjustments needed for a property to be comparable, the   comparable the property is likely to be.

 

Housing   and   measure the supply of homes.

 

Which methods are reliable in residual appraisals?

 

The most probable price that will be paid for a property under competitive market conditions is the   price.

 

An industry is a driver industry is the location quotient is ______ 1.0.

 

Comparative advantage in a region can affect the production of _____.

 

The demand for properties is _______ by the nature of industries and businesses that are attracted to the region.

 

The loan to value ratio ______.

 

True or false: Historically, homeownership has been a good investment.

 

The more desirable an area is _______.

 

Homeownership can be viewed as:

 

Which of the following have a positive impact on demand?

 

Depreciation from dated lighting fixtures is referred to as:

 

Match the following public good with their measurements.

 

To determine the ratio of sale price to monthly rental income referred to as gross rent multiplier, an appraiser uses        and prices from recent comparable properties.

 

Investors may be able to acquire        properties at below market prices.

 

A desire to shift maintenance responsibility is what type of reason to rent instead of own?

 

Match the following items and the impact they have on demand:

 

Match the type of industry with its region.

 

Rank the following in terms of liquidity (more liquid to less liquid)

 

Renting a property allows the renter to avoid which of the following costs:

 

An appraiser values a corner lot as having $2,500 in value. The only difference between a property and its comparable is that the comparable is on a corner lot. What adjustment will the appraiser make to the value of the subject property?

 

What is the expected price at the end of year one if a house is purchased for $325,000 and the expected rate of appreciation in house price is 2%?

 

Individual preference can cause the market value to be        price.

 

The cost and source of electric energy measures which of the following?

 

Property sales that otherwise might not occur are referred to as       .

 

A property may become distressed when the market value of the property is below the balance of the       .

 

Which of the following have a negative impact on demand?

 

Match the following age groups with real estate industry data.

 

Although the impact of interest rates on demand for home ownership is clear, the        is less clear.

 

The capitalization effect compares the quality of public services relative to       .

 

The cost approach requires adding which of the following items to determine value?

 

Depreciation from normal wear is referred to as:

 

Maintenance, insurance, and property taxes are costs associated with:

 

Which are risks of investing in a distressed property going to auction?

 

Beaches are an example of what kind of comparative advantage?

 

House prices are highly        on the geographic area they are located in.

 

The more adjustments needed that have to be made to a potential property in order to make it more like the subject property, the _________ comparable it is likely to be.

 

Driver industries are businesses producing the greatest       .

 

Owning a home encourages which of the following?

 

If a house is purchased for $100,000 and expected to be sold for $107,000 a year later, the expected rate of appreciation in the home price is:

 

Appraisers can make which of the following adjustments to comparable properties?

 

If a sale of a distressed property is not possible, what alternatives exist to complete an investment in the distressed property?

 

Location quotients are used to determine the        base.

 

True or false: The ability of a region to attract businesses has no impact on house prices.

 

Population growth has a        impact on the growth rate in household.

 

Homeownership is viewed as which of the following?

 

Which methods are reliable in residential appraisals?

 

Housing starts and sales of existing homes measure:

 

Industries clustering in particular geographic regions is an example of: 

 

The relationship between interest rates and home ownership is:

 

A risk to investors of distressed properties going to auction is that may not be a successful ________________.

 

A distressed property will be property when the net cash from sale exceeds:

 

The expected appreciation rate on home equity measures the expected return on: 

 

If an individual is likely to relocate in the short-term, they are more likely to:

 

Which of the following is equal to the change in total employment?

 

The sales comparison approach requires which of the following for appraisal?

 

Comparable single-family rental properties within the same area typically occur: 

 

All else equal, a decline in interest rates will        home ownership.

 

If an individual is planning to live in an area for a long period of time, they are more likely to: