Ch.12 by Albert Chang

Chapter 12: Professional Activity 

1.) Value in use derives from the attractiveness of a property to other who willing to trade assets. (T/F)

2.) Arms length mean the buyer and seller of the transaction have equal bargaining power? (T/F)

3.) Neighborhood is to share similar population characteristics and adjoining properties with comparable uses. (T/F)

4.) Cost approach is a there valuation techniques taught to real estate appraisers requiring estimating a market value. (T/F)

5.) GRM stands for Gross rent multiplier? (T/F)

6.) The process of converting an income stream into lump sum estimate present value.

a) Adjusted Grid

b) Capitalization 

c) Estimated Gross Monthly Rent

d) None of the Above

7.) A specific value an income producing asset that has a particular investor or potential investor.

a) Investment Value 

b) Market Value

c) Commercial Value

d) All of the Above

8.) A shortcuts employed by human problem solvers needing to minimize cognitive effect.

a) Calculator

b) Computer

c) Heuristics 

d) None of the Above

Answers : 1.)F 2.) T 3.)T 4.)T 5.)T 6.)B 7.)A 8.)C