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In preparing a market analysis on a parking lot in a very crowded downtown area, which of the following considerations should the broker address?

A – Social and economic externalities would be extremely important items to consider in this case.
B – The principal of substitution tells us that a substituted use is never the best use of the property.
C – Highest and best use should be considered as it may indicate a parking lot is not the most productive use.
D – Regression or progression may be factors in determining the value of the subject property in this instance.

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Question 2

A seller’s broker is negotiating to convince a lender to accept less than the balance due as complete satisfaction of the seller’s debt. If the lender agrees the transaction would be considered

A – a negotiated balance reduction.
B – an equitable redemption.
C – debt forgiveness.
D – a short sale.

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