MARKET APPROACH - TYPES OF MARKET, DEMAND AND SUPPLY, CURVE,

BELL CURVE

1. When the supply is in excess of demand, it is called as

a) Buyers market b) Sellers market

c) Stable market d) No market

2. When the supply is less than demand, it is called as

a) Buyers market b) Sellers market

c) Stable market d) No market

3. In buyers market, the king is

a) Public b) Seller c) Buyer d)

None

4. In sellers market, the king is

a) Broker b) Buyer c) Public d)

Seller

5. Expectations of people about likely fall in price of real estate in near future results
in

a) Stable market b) Buyers market

c) Sellers market d) No market

6. Under market approach, we can normally value only

a) Non - marketable properties b) Marketable properties

c) Religious properties d) Leasehold properties

7. Non - marketable properties can be valued by

a) Income approach b) Market approach

c) Cost approach d) Composite rate method
8. ‘Highest and Best use’ aspect is to be considered in
a) Composite rate method b) Cost approach
c) Income approach d) Market approach

9. ‘Market is Supreme’ - This aspect holds good in

a) Market approach b) Cost approach

c) Income approach d) Composite rate method

10. In the demand and supply curve, price is plotted as

a) X axis b) Y axis c) Z axis d)

None

11. In the demand and supply curve, quantity of goods available is plotted as

a) Z axis b) Y axis c) X axis d)

None

12. Transaction takes place after higgle haggle (bargaining) for the
price. This process is explained by

a) Sellers curve b) Supply and demand curve

c) Buyers curve d) Bell curve

13. The four factors - economic, physical, social and legal factors mainly affect

a) Value b) Cost c) Price d)

None

14. Sale recorded at Registrar’s office is one of the sources where

a) Market value can be collected b) Sale instances can be

collected
c) Cost can be collected d) Price can be collected

* * *
Answers :

64. - a 64.5 - a 64.9 - a 64.13 - a

1
64. - b 64.6 - b 64.10 - b 64.14 - b
2
64. - c 64.7 - c 64.11 - c
3
64. - d 64.8 - d 64.12 - d
4
MARKET APPROACH - COMPARISON OF SALE INSTANCES -
FACTORS OF COMPARISON AND WEIGHTAGE OF
ADJUSTMENT IN VALUE

1. Formula for success in any valuation assignment is

a) Inspect before you value b) Allot the work to your staff

c) Receive the fees before

d)Valuation report accepting the
assignment

2. For collecting data for sale comparisons, a good source of information is

a) Court b) Registrar of documents

c) Corporation d) Town planning department

3. Before undertaking comparison with sale transactions, the valuer’s prime

duty is

a) Study the tax receipt b) Study the drawing

c) Study the title deed d) Study the encumbrance
certificate

4. Sale transaction records cannot be fully relied upon because of

a) Wrong representation b) Under valuation

c) Over valuation d) Black money transaction

5. The weightages adopted in sale transaction may

a) Change from locality to locality b) Be constant everywhere

c) Change from purpose to purpose d) Change from time to time

6. The weightage to be applied to sale instance rate in the case of

landlocked land is
a) + 15% b) - 75%
c) + 25% d) - 15%
7. The weightage to be applied for forced sale by authorities is say,

a) + 5% b) + 10%
c) - 15% d) + 15%

8. The weightage to be applied for low lying plots

a) - 50% b) - 25%
c) - 30% d) Deduct for cost of earth filling

9. The weightage to be applied for large size plot

a) - 15% to - 40% b) + 15% to + 40%

c) + 60% d) - 100%

10. The weightage to be applied for properties pending litigation

(stay in the court against sale)

a + 10% b) - 30% or
) more
c) + 20% d) Zero

* * *

Answer
s:
65.1 - a 65.5 - a 64.9 -
a
65.2 - b 65.6 - b 64.10 -
b
65.3 - c 65.7 - c
65.4 - d 65.8 - d
MARKET APPROACH TO VALUE - HEDONIC MODEL AND
ADJUSTMENT GRID MODEL UNDER SALES COMPARISON
METHOD

1. The adjustment grid model can be adopted mainly for

a) Flats b) Restaurant
c) Cinema theatre d) Agricultural land

2. For adjustment grid model, the (minimum) main attributes of the properties are

a) 3 (Location, size, age) b) 4 (Location, size, age,

specification)
c) 2 (Location, size) d) 1 (Location)

3. In the adjustment grid model, negative weightages are given for

a) Normal specification b) Superior specification

c) Inferior specification d) Posh specification

4. In the adjustment grid model, positive weightages are given for

a) Substandard specification b) Inferior specification

c) Normal specification d) Superior specification

5. Under the adjustment grid model, the rate adjustment is mainly to

be given first for

a) Time b) Location c) Size d) Age

6. The factors to be considered under Hedonic Pricing Model

(Adhoc Comparison Technique) are

a) Size, Time, Location b) Size, Time, Location, Age

c) Size, Time d) Size
 * * *

Answers :
1. - 5. -
a a
2. - 6. -
b b
3. -
c
4. -
d
MARKET APPROACH TO VALUE - LAND CHARACTERISTICS
AND ITS EFFECT ON LAND VALUES

1. The value of land mainly depends on

a) Economic, technical, social and legal aspects

b) Size, encumbrance, climate, building bye-laws
c) Topography, prestige aspect, view aspect, Tenure
d) Community aspect, vaastu aspect, landlocked concept, environment
aspect

2. If the land is situated in a business area of the town, the rental value is

a) Less b) More
c) Double d) Stable

3. The important criteria for the selection of the best land in the town is

a) More width of road b) Commercial zone

c) Location, location & location d) Residential zone

4. If the land is situated where there are no infrastructure facilities

like water, power, drainage, the value is

a) Half the value of other plot b) More

c) Stable d) Less

5. When the land is large, the land rate is comparatively

a) Lower b) Higher
c) Stable d) Unstable

6. Wider frontage plot in a commercial zone is valued

a) Less b) More
c) Constant d) No value
7. Return frontage is known as

a) Tandem plot b) Intermittent plot

c) Corner plot d) Middle plot

8. The plots having road in the front and rear side is called as

a) Single frontage b) Return frontage

c) Multi frontage d) Double frontage

9. When the width of road is more, normally the value is said to be

a) More b) Less
c) Double the normal value d) Half the normal value

10. The concept of floating FSI or transferable right for development of the land
is

a) Building bye-laws b) TDR aspect

c) Tenure aspect d) Environment aspect

* * *

Answers :

67. - a 67.5 - a 67.9 -

1 a
67. - b 67.6 - b 67.10 -
2 b
67. - c 67.7 - c
3
67. - d 67.8 - d
4
 MARKET APPROACH TO VALUE - HYPOTHETICAL PLOTTING
SCHEME FOR VALUE OF LARGE SIZE LAND - RESIDUAL
TECHNIQUE AND OTHER DEVELOPMENT METHODS -
VALUATION FOR JOINT VENTURE DEVELOPMENT OF
PROPERTY

1. Hypothetical plotting scheme is mainly used to value

a) Large open land b) Flats

c) Industries d) Residential building

2. Hypothetical building scheme is normally used for

a) Large utilised property b) Under

utilised property with more FSI
with less FSI
c) Industries d) Flats

3. Sale comparison method and development method (Residual

technique) are the two main methods under

a) Income approach b) Cost approach

c) Market approach d) Composite rate method

4. When total unavailability of sale instances are there, the method

useful to find the land rate is called as

a) Profit method b) Sale comparison method

c) Land & building method d) Development method
(Residual technique)

5. By using this method, land value can be arrived at. The method is called as

a) Development method b) Profit method

c) Composite rate method d) Income capitalisation method
 6. Joint venture is mostly applicable for

a) Individual residential building b) Apartment building

c) Cinema theatre d) Hotel
7. In a joint venture development, the ratio normally represents

a) Landlord : Contractor b) Landlord : Promoter

c) Promoter : Landlord d) Engineer : Landlord

8. In a joint venture, the land rate is to be considered based on

a) Average of market & guideline rate b) Guideline rate

c) Whichever is more d) Prevailing market rate

9. In a joint venture agreement, the building is rate is based on

a) The proposed specifications b)PWD

c) CPWD rates d)RO/SRO

10. In a joint venture arrangement, the share of the landlord will be more if the land rate
is
a) Less b) High
c) Average d) Adopted based on Guideline
rate

11. In a joint venture agreement, the share of the builder is less when

a) Building rate is equal to the land component

b) Building rate is more than the land component
c) Building rate is less than the land component
d) The FSI is less

12. In a joint venture agreement, the two main factors which decide the ratio normally
is

a) Demand b) Plot coverage

c) Approved plan d) Land rate & FSI
* * *