1. Developer Reed constructed a fifty-five unit condominium building. Even though the property MET minimum municiple requirements, there was not enough parking areas for owners and guest. A a result , Reed had to construct underground parking which increased the market value of each unit by $10,000. However, it cost Reed approximately ?$25,000 per unit to add the additional parking.
WHAT PRINCIPLE OF VALUE BEST DESCRIBES THIS SITUATION?
A. PRINCIPLE OF CONSISTENT USE
B. PRINCIPLE OF CONTRIBUTION
C. PRINCIPLE OF SURPLUS PRODUCTIVITY
D. PRINCIPLE OF REGRESSION
2. Which of the following statements best describes the importance of studying consumer behaviour for real estate salesperson?
a. Studying consumer behaviour is not that important ause nuyers makedescision based on their needs and not their wants.
B. IT is not really possible to study consumer behavior because buyers are not logical and make descisions that can not be explained.
C. General principles and trends should be studied but not specifics because it is not possible to determine what is motiviating a specific buyer
d. If the needs and wants of consumers can be evaluted, this will assist a salesperson when selling both real estate and real estate services.