The Principle That an Informed Purchaser Would Not Spend More

question 24

Multiple Choice

The principle that an informed purchaser would not spend more for a piece of real estate than the cost to purchase the land and the cost to construct a structure,provides the rationale for which of these valuation methods?

• A)Sales comparison approach
• B)Income approach
• C)Cost approach
• D)Direct capitalization approach

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Definitions:

Psychoanalysis

A therapeutic technique and theory of psychology developed by Sigmund Freud, focusing on unconscious processes.

Hypnosis

A trance-like state of focused attention and heightened suggestibility, with diminished peripheral awareness, often induced by a therapeutic process.

Prozac

A brand name for fluoxetine, a selective serotonin reuptake inhibitor (SSRI) used to treat depression, OCD, and several other psychological conditions.

Antidepressant

A type of medication designed to alleviate symptoms of depressive disorders by modifying brain chemistry.