Real Estate QUIZMASTER
Definitions
Analytical
Cost New
Formulae
Miscellaneous
100
100
100
100
100
200
200
200
200
200
300
300
300
300
300
400
400
400
400
400
500
500
500
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500
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Real Estate QUIZMASTER
Definitions
Analytical
Cost New
Formulae
Miscellaneous
100
100
100
100
100
200
200
200
200
200
300
300
300
300
300
400
400
400
400
400
500
500
500
500
500
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 100
The amount which the
property is realistically
likely to sell at in the
open market
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 200
The highest price a willing
buyer would pay and a willing
seller would accept, both fully
informed and without duress or
unusual financing
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 300
A professional opinion and
written report that is
defensible and supported
for a defined real estate
value
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 400
The maximum price a
buyer would pay or the
minimum price a seller
would accept on a
property of interest
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 500
The price a property is likely to
sell for if sold in less than
limited marketing time, such as
in a distressed auction for a
limited time
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 100
A site being used in less
than optimal way with less
than maximum productivity
is said to be _____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 200
The option value of a land
may _____ due to
development on neighboring
location, which fulfills the
need for whole region
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 300
The most misused of all
valuation approaches is
the _______
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 400
Of Single Story Retail, Surface
Parking Lots and Hi Rise Hotel
property types, _______ have
the lowest improved site
values and the highest option
value
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 500
An insurance company
will consider _________
as an objective of the
valuation opinion
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Cost New for 100
The ________________
method of valuation can
be used only if the
building is fairly new
(less than 10 years)
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Cost New for 200
The _____________
method is most accurate
in estimating the cost
new
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Cost New for 300
Cost factors per unit of the
building’s various
dimensions are used to
determine the construction
cost as new in the
____________ method
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Cost New for 400
Cost new may be
estimated by solving for
________ or
replacement costs
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
DAILY
DOUBLE
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Daily Double
Cost New for 500
In the __________ method of
valuation the cost as new of
building is found by taking bids
from subcontractors on all building
components and summed along
with general contractor fees and
normal development fees
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Formulae for 100
Value = NOI
???
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Formulae for 200
In a statistical model:
Sales price =
a + b1(building size) + b2(Lot size)
+ b3(Age) + bn(x) + residual,
“b” is the __________
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Formulae for 300
In a statistical model:
Sales price =
a + b1(building size) + b2(Lot size)
+ b3(Age) + bn(x) + residual,
“x” is the independent ______ of
interest from each observation in
the sample
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Formulae for 400
Accrued Depreciation =
Cost New X Effective Age
??????????
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Formulae for 500
Site Value =
(Current Use Value) +
(Future Value or ______ )
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 100
Value concepts are always
_____ in nature while price
is usually factual in nature
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 200
The ________ value
represents the value of the
property with the existing
businesses operating on
the property
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 300
Soft Costs in Costs New
run about ______ of the
Hard Costs
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 400
The land value or site
acquisition value is based
on the land as though
vacant and available to be
developed to its _____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 500
________ value
normally represents an
equilibrium value
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner