SPECIALISED PROPERTIES - QUESTIONS

1 Why is there less evidence of market value for non market properties?

2 List 4 non market land uses and briefly explain how you would value these
properties if there is a lack of market evidence.

3 Why is the concept of highest and best use so important when evaluating
specialist properties?

4 What is the cost method and how is it used to value non market properties?

5 A new building costs $250 000 to build and represents the highest and best use of the site. What is its market value?

6 The example in 5 is a unique land use and there are no comparable sales. How would you determine land value?

7 What is meant by opportunity cost and how is it applied to the valuation of non market specialist properties?

8 What is the definition of market value for non market specialist properties?

9 What does the Seatainers case say about the valuation of non market specialist properties?

10 How do the concepts of flexibility of use and accrued depreciation affect the
value of specialist properties?

11 List 4 important differences between the valuation of real estate and the
valuation of plant and equipment.  

12 What are the two main method of valuation for plant and equipment?

13 Give 3 examples of how opportunity cost can be used to value plant and
equipment.
14 List and describe 4 sources of sale information of plant and equipment

15 What are clearing sales and what is their relevance in the valuation of
plant and equipment.

16 Describe how technological change can affect the value of plant and
equipment.

17 Movable property is known as ..……whereas immovable property is
known as ……………

18 How would you value a baker's oven that cannot be removed without
structural damage to the building?

19 How would you value an conditioning plant that can only be removed by
employing and expensive helicopter?

20 What is meant by in situ value and what is its relevance to the valuation of
plant and equipment.