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10 Cards in this Set
- Front
- Back
- 3rd side (hint)
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The Characteristics of Value includes all of the following except |
Supply |
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Combining two or more adjoining properties is called? |
Assemblage |
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Kevin knows that rental property in the area averages a Gross Income Multiplier (GIM) of 7.5. If the property is producing annual rental income of $55,000 plus additional income of $20,000, how much should he offer for the property? |
$562,500 |
[Section 16 Slide 117] ($55,000 + $20,000) $75,000 x 7.5 = $562,500 Value |
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A 9 year old condominium was estimated by an appraiser to have a reproduction cost of $240,000. It has an effective age of 3 years and an economic life of 60 years. What is the accrued depreciation? |
$12,000 |
Section 16 Slide 98] $240,000 / 60 = $4,000 Annual depreciation $4,000 x 3= $12,000 Accrued depreciation |
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Donny's house didn't appraise as high as he expected. The appraisal report cited a railroad track running along the back of the property as having a negative effect on the value. This is an example of: |
External obsolescence |
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The Cost-depreciation approach is commonly used to find value for all of the following reasons except: |
To Calculate income |
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When you create a CMA you collect data from the MLS. You would get all of the following data from the MLS EXCEPT? |
Appraisal values |
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Using the sales comparison approach to valuation: the subject property has 4 bedrooms, two bathrooms and no lanai. The comparable property has 3 bedrooms, two bathrooms and a lanai. The comparable property is priced at $212,000. The value of an extra bedroom is $7,000 and the lanai is $8,000. How much should you price the subject property? |
$211,000 |
[Section 16 Slide 82] $212,000 + $7,000 - $8,000 =$211,000 |
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Carlyle managed an apartment building that has 10 units which rents at $1100 each per month. Last month he had combined vacancy and collection losses of $3,300. His insurance payment was $400, and the utility bills for the common area was $700. What was his effective gross income last month? |
$7,700 |
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What is the value of a property with a Net Operating Income of $120,000 and a capitalization rate of 10.5%? |
$1,142,857 |
[Section 16 Slide 107] I (NOI) / R (Capitalization Rate) = V (Value); $120,000 � .105 = $1,142,857 |
