Chapter 10 & 12
What is the periodic payment of a fully amortized mortgage with quarterly payments, an initial loan amount of $125,000, a loan term of 25 years, and an interest rate of 9.75% per year?
$3,348.11
An acre of land includes
43,560 square feet
The term used to explain the difference between the value of a parcel of land and the outstanding balance on an existing mortgage is known as
Equity
Difficulty of converting a real estate investment into cash at market value in a reasonable time, is known as:
liquidity marketability risk
What is the future value in 2 years of a cash payment of $1,000 received today at 10% interest per year? Assume annual accounting.
$1,210.00
What is the periodic payment of a fully amortized mortgage with annual payments, an initial loan amount of $125,000, a loan term of 25 years, and a interest rate of 9.75% per year?
$13,507.12
A rectangular site measures 125 feet (frontage) by 256 feet (depth), of which 26 feet is in the public right of way. What is the gross and net site area?
32,000 square feet gross area and 28,750 square feet net area
Before performing a site inspection, an appraiser should
Gather basic information about the site Know the reasons for the site inspection Have note-taking materials available
Which of the following is NOT a characteristic of a perfect market?
Government plays a large role
A full section of land usually
Includes 27,878,400 square feet
Risk due to uncertainty in future interest rates is referred to as:
Interest risk
To achieve positive leverage, mortgage money would have to be obtained at an interest rate that is
Less than the property yield
To achieve positive leverage, mortgage money would have to be obtained at an interest rate that is:
Less than the property yield
The financial device used to maximize cash flow using other people's money is commonly referred to as:
Leverage
Land not needed to support the existing improvements and cannot be separated and sold off
Surplus Land
Land not needed to support the existing improvements and cannot be separated and sold off:
Surplus Land
An incremental increase of Value that results when two or more sites are combined to produce greater utility
The process whereby large parcels of land are divided into lots and recorded in the county offices
The size of a residential-income zoned lot may determine?
The size of allowable construction The number of units allowed Whether the lot can legally be built upon
A parcel of land that is improved to the point of being ready to be built upon is called
a site
Generally, as the land size increases the unit price:
decreases
The length of a tract of land along a street is call the land's
frontage
Combining two or more sites in order to develop one site with greater value than the individual sites have separately is called
plottage
Assemblage is:
the act of bringing two or more smaller lots into common ownership for use