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'Units of Comparison' is used in which approach(s) to value?
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What is the indicated value of the subject property?
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What is the dollar adjustment for age?
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What is the capitalization rate of the following?
A multi-family apartment complex earned a gross income of $225,000 this year and is expected to stay the same next year. Operating expenses are reported at 35% of the gross income which is in line with the expense comparables.
If this property sells for $1,250,000, what is the capitalization rate?
A multi-family apartment complex earned a gross income of $225,000 this year and is expected to stay the same next year. Operating expenses are reported at 35% of the gross income which is in line with the expense comparables.
If this property sells for $1,250,000, what is the capitalization rate?
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Which of the following has the greatest impact on site value?
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Jones Valley Apartments have an appraised value of $650,000. Assume for this example that the GRM is 7.5 and operating expenses are 40%.
What is the gross monthly income?
What is the gross monthly income?
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Which of the following is NOT an example of an arms-length transaction?
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What is considered to be the key to the sales comparison approach?
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The method used in reconciling the adjusted values of comparables is:
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What is the monthly tax liability on the following?
1616 Jones Street was recently given a $205,000 total value from the local assessment office. This county assesses property at 45% and taxed at 28 mills.
1616 Jones Street was recently given a $205,000 total value from the local assessment office. This county assesses property at 45% and taxed at 28 mills.
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Which method of making adjustments uses data from two sales where only one difference is present, to determine the value of an adjustment?
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What is the PGIM?
Sale price = $200,000
Monthly rent = $2,200
Additional Revenue = $700
Sale price = $200,000
Monthly rent = $2,200
Additional Revenue = $700
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True or False: The equity capitalization rate is the capitalization rate that reflects the relationship between the income of the property and the equity investment committed to the property.
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When selecting comparable properties to use in the Sales Comparison Approach, which of the following is not important?
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Which of the following sales would not make a good comparable?
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What is the debt coverage ratio using the following information?
The property is leased for $20,000 per year
Vacancy and Collection Loss is 4%
Operating Expenses are $500 per month
Annual Debt Service is $9,500
The property is leased for $20,000 per year
Vacancy and Collection Loss is 4%
Operating Expenses are $500 per month
Annual Debt Service is $9,500
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A property has an Effective Gross Income of $140,000 and the operating expenses are 25% of the EGI. Assuming the Capitalization Rate is 13.5%, what is the indicated value of the property?
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Before a sale may be used as a comparable property, the appraiser must verify:
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What is the primary source of information for the adjustments?
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What is the dollar adjustment for exterior?
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Percentage adjustments are convenient for making which of the following adjustments?
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Adjusting comparables is made on the basis of:
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Loss of income caused by rooms or units that are unoccupied is called ____________.
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What is the Potential Gross Income of the following?
3434 Johnston Street rents for $600 a month. It has vacancy of 15% per year and expenses are 25% per year.
3434 Johnston Street rents for $600 a month. It has vacancy of 15% per year and expenses are 25% per year.
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True or False: The components into which a property may be divided for purposes of comparison are called Units of Comparison.
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Cumulative percentage adjustments are calculated by:
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Which approach depends most heavily upon direct comparison?
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If a property is valued at $600,000 and has a NOI of $60,000, what is the Cap Rate?
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For the appraiser to obtain a true view of the marketplace and it's activity:
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What is the effective gross income multiplier?
Recent Sales Price: $324,000
Effective Gross Income: $27,000
Operating Expenses: $13,000
Recent Sales Price: $324,000
Effective Gross Income: $27,000
Operating Expenses: $13,000
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What is the primary principle of the income approach?
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Which category often requires more than one adjustment?
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The apartment building being appraised is in an average location. What adjustment is usually made when a comparable sale is in a poorer location?
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Which of the following criteria is not very important in selecting a property as a comparable?
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A problem for appraisers that may be solved by regression analysis is:
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Which of the following is the proper sequence of adjustments in the Sales Comparison Approach:
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Adjustment are made to the:
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An apartment complex is selling for $3,225,000 and the stated capitalization rate is 11.5%. What is the property's Net Operating Income (NOI)?
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We are appraising 1,000,000 square feet of farmland which includes a 9 acre lake. The owner leases this land at $.12 per sq. ft. annually for the dry land. The owner's expenses are $825 per month. What is the NOI for this property?
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Trump Tower in Alabama is valued at $800,000,000. At purchase time, the expense were 36% of EGI, vacancy was 10%, and the property had a PGIM of 25. What was the property's new NOI?
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True or False: PGIM is a percentage of gross income to value.
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What is the first step in the sales comparison approach?
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The sales Comparison Approach used to be called:
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The process by which the appraiser selects the most significant data from the comparable properties for a valuation conclusion is:
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What is the operating expense ratio for the following example?
A rental home generates $14,500 in potential gross income. Vacancy and collection loss is 10% of PGI. Operating expenses are $2,000.
A rental home generates $14,500 in potential gross income. Vacancy and collection loss is 10% of PGI. Operating expenses are $2,000.
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Which of the following is NOT a component of a neighborhood's life cycle?
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True or False: You must account for the mortgage payment when calculating the net operating income.
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The Sales Comparison Approach utilizes which economic principle when setting value in reference to comparable properties?
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A multi-family complex has a Gross Rent Multiplier (GRM) of 12 and is reporting a gross annual income of $167,500.
What is the indicated value of the property using the information given?
What is the indicated value of the property using the information given?
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In order to obtain the information appraiser should:
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True or False: When appraising residential property, income multipliers are not appropriate.
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In reviewing the data, the appraiser should verify all of the following items except:
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You are reviewing an operating statement and see a line item of real estate taxes in the expense statement. Is this a fixed or variable expense?
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Which of the following is the primary principle used in the Sales Comparison Approach?
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What is the GIM?
Sale price = $200,000
Monthly rent = $2,200
Additional Revenue = $700
Sale price = $200,000
Monthly rent = $2,200
Additional Revenue = $700
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House A sold sixteen months ago for $132,500. It is currently under contract for $186,000. What was the average appreciation per month?
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What is the minimum amount of comparables an appraiser must use in the Sales Comparison Approach?
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Market data usually provides the best indication of market value when it is:
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Which of the following is not an element of comparison in the Sales Comparison Approach?
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A reason for using regression analysis is that it:
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In analyzing the data for the comparison, the appraiser could use:
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Which of the following individuals would be a source of data verification?
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What is the GRM of the following example?
2121 Love Street sold for $115,000 and was rented for $6,500 per year. What is the monthly GRM of this property?
2121 Love Street sold for $115,000 and was rented for $6,500 per year. What is the monthly GRM of this property?
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You are appraising a quadplex that is suffering from functional obsolescence. According to your data, there is a $15 per loss every month for every unit due to this.
If the capitalization rates for this quadplex is 10%, how much value loss is due to the functional obsolescence?
If the capitalization rates for this quadplex is 10%, how much value loss is due to the functional obsolescence?
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An appraiser is seeking com-parables and finds a sale that was the result of the buyer exercising an option. This sale price:
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What appraisal principle is in effect in the following?
A new interstate is being constructed along the property line of a rental home. The owner reports that rents have decreased by 10% due to noise.
A new interstate is being constructed along the property line of a rental home. The owner reports that rents have decreased by 10% due to noise.
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The subject property is $1,200 inferior to the comparable due to its location, and $1,000 superior due to road frontage. What is the indicated value of subject property if the comparable sold for $103,000?
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Houses listed substantially above market price will normally:
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Adjustments may be made on which of the following?
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What causes individual sales to deviate from the market norm?
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What is important in selecting a comparable?
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Residential Sales Comparison and Income Approaches
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