Question

1) Under the cost approach to market value, an investor should not pay more for a property than it would cost to rebuild it at today's prices. (T/F)

2) Easy money can choke off the demand for real estate. (T/F)

3) Gold and precious metals and collectibles such as stamps, coins and cars are considered intangible investments. (T/F)

4)The direct capitalization approach to real estate valuation considers the value of a property to be

a. the property's area in square feet times the average value per square foot

b. what a qualified buyer is willing to pay for it

c. the present value of all future income generated by the property

d. the average value of similar properties in the immediate area

Answer 1