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A comparable property sold 4 months ago for $223,500. The adjustments for the various elements of comparison have been calculated as follows: Location: +3% Market

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A comparable property sold 4 months ago for $223,500. The adjustments for the various elements of comparison have been calculated as follows: Location: +3% Market conditions: +0.6% per month Physical characteristics: +1,500 Financing terms: -52,500 Conditions of sale, Legal characteristics, Use: 0 Nonrealty items: +55,200 Round your answers to the nearest hundred and only use numbers (t.e do not include s or 96) a) What is the normal sale price? a) $ b) What is the value of the market conditions adjustment? b) $ c) What is the market adjusted normal sale price c) 5 d) What is the value of the location adjustment? d) $ e) What is final adjusted sale,price for the comparable? e) 5 An appraiser forecasts for the "Pawnee's Dining Building and provides the following forecasts: The building consists of 2 floors with the following (6) properties: 1st floor - (3) fine dining restaurants: . (1) - Charles Mulligan's Steakhouse, renting for $3750/month (2) - Tom's Bistro, each renting for $2000/month 2nd floor- (1) bar/lounge and (2) fast food joints (same company) (1) - Snakehole Lounge - renting for 53500/month (2) - Paunch Burgers (fast food), each renting for $1250/month Vacancy and Collection Losses: 7% per year Miscellaneous Income: $1,450 Operating expenses: 20% per year Capital expenditures: 6% per year Estimate the following for the Pawnee's Dining Building, Round your answers to the nearest thousand Answers should only contain numbers. Do not include signs, symbols or units (ie do not include 5 or 6). Commas are not necessary a. What is the potential Gross Income (PGI) = $ b. What is the Effective Gross Income (EGI) - $ c. What is the Net Operating Income (NOI) = $ d. Suppose the average overall capitalization rate for the comparable properties is 7.65% What is the indicated value using the cap rate? (Hint Use the rounded NOI to calculate the value and do not round the cap rate) Indicated Value (Using caprate) - 5 e. Now suppose this is a small income-producing property and the average Effective Gross income Multiplier (EGIM) for the comparable is 8.64 What is the indicated value using the EGIM? Indicated Value (Using cap rate) - 5

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