RAA Real Estate Market 3

Question 1

The concept of 'linkage' in real estate refers to:

Accepted Answer

The time-distance relationship between a property and supporting land uses

Answer

Linkage describes the time-distance relationship between a property and the uses it depends on, such as employment centers or shopping.

Question 2

A real estate market cycle typically includes which four phases IN ORDER?

Accepted Answer

Expansion, Peak, Contraction, Trough

Answer

The standard real estate cycle progresses through Expansion (rising demand), Peak (highest activity), Contraction (declining activity), and Trough (lowest point).

Question 3

Supply in the real estate market is considered INELASTIC primarily because:

Accepted Answer

Real property is immobile and production takes time

Answer

Real estate supply is inelastic because construction takes considerable time and property is fixed in location, preventing rapid supply response to demand changes.

Question 4

Which economic base analysis concept states that local employment is divided into basic (export) and non-basic (service) sectors?

Accepted Answer

Economic base theory

Answer

Economic base theory divides local employment into basic industries that export goods/services and non-basic industries that serve the local population.

Question 5

An appraiser notes that a neighborhood has a high rate of homeownership and well-maintained properties. These are indicators of:

Accepted Answer

Neighborhood stability

Answer

High homeownership rates and well-maintained properties indicate owner pride and investment, which are signs of neighborhood stability.

(RAA) Certified Residential Accredited Appraiser Practice Test

(RAA) Certified Residential Accredited Appraiser Practice Test

RAA Real Estate Market 3