REAL ESTATE 306 FINAL EXAM ACTUAL 2025/2026 WITH VERIFIED ANSWERS

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REAL ESTATE 306 FINAL EXAM ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS 3 approaches to value - Answer -1. sales comparison (market) approach 2. cost approach 3. income approach sales comparison (market) approach - Answer --value of RE can be determined by analyzing the sale prices of similar properties -in a competitive market, close substitutes should sell for similar prices -difficulty: how many truly close substitutes exist & how many of these have sold recently? -"one price" rule (i.e. equivalent goods sell for equivalent prices) *arbitrage not available in RE (can't buy & sell RE quickly) cost approach - Answer --setting a long-run equilibrium -theory of substitution estimated reproduction cost of improvements - estimated accrued depreciation = depreciated cost of building improvements +estimated value of site = indicated value by cost approach -assumption: cost of creating a property is related to its market value income approach - Answer --"income capitalization" -theory of anticipation -value in investment property is a function of the income it is expected to produce (& inherent risk) -mimics analytics B&S use Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com value = PV of expected future CFs (PV of anticipated income -2 methods: ratio models (direct capitalization & gross rent multiplier) & discounted cash flow (DCF) assessed value - Answer --value assigned by local government for property tax purposes -WI: the assessor's opinion of "market value" when are value calculations required? - Answer --property acquisition is contemplated -structure is: modernized, renovated, abandoned, demolished -site is developed -property is used for collateral for a loan appraisal - Answer --more narrow definition, estimation of value market value - Answer --most probable selling price, assuming normal sales conditions -may not be fundamental value -typical buyer/seller interaction in a typical market investment value - Answer --value to a particular individual (investor) transaction price - Answer --price actually paid for a specific property cost - Answer --amount paid to build, create why do we have to estimate market value? - Answer --in markets with perfect competition, all transactions take place at true market value Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com