Assume the market value of the subject site (land only) is $270,000 You estimate that the cost to construct the improvements to the subject property would be $350,000 today In addition, you estimate that accrued depreciation on the subject is $50,000 What is the indicated value of the subject using the cost approach Replacement costs have been estimated as $300,000 for a property with a 70 year economic life The current effective age of the property is 15 years The value of the land is estimated to be $125,000 What is the estimated market value of the property using the cost approach, assuming no external or functional obsolescence A comparable property sold 10 months ago for $98,500 If the appropriate adjustment for market conditions is 0 30 per month (with compounding), what would be the adjusted price of the comparable property You find two properties that have sold twice within the last two years Property A sold 22 months ago for $98,500 it sold last week for $108,000 Property B sold 20 months ago for $105,000 it sold two weeks ago for $113,500 Assuming no compounding, what is the average monthly rate of change in sale prices Data for five comparable income properties that sold recently are shown below Property NOI Sale Price Overall Rate A $ 57,800 $566,600 0 1020 B 49,200 496,900 0 0990 C 63,000 630,000 0 1000 D 56,000 538,500 0 1040 E 58,500 600,000 0 0975 What is the indicated overall rate (R O ) Use the following property data Cash flow from operations Year 1 2 3 4 5 NOI $150,000 $150,000 $150,000 $150,000 $150,000 Debt Service $125,000 $125,000 $125,000 $125,000 $125,000 Cash Flow at sale Sale Price $2,000,000 Cost of sale $125,000 Mortgage balance $1,500,000 a Assuming the going in capitalization rate is 8 00 percent, compute a value for the property using direct capitalization b Assuming the required yield return on unlevered cash flows is 10 percent, and that the property will be held by a buyer for five years, compute the value of the property based on discounting unlevered cash flows c Assuming the relevant required yield return on levered cash flows is 15 percent, and that the property will be held by a buyer for five years, what is the present value of the levered cash flows 7 You are estimating the value of a small office building Suppose the estimated NOI for the first year of operations is $100,000 a If you expect that NOI will remain constant at $100,000 over the next 50 years and that the office building will have no value at the end of 50 years, what is the present value of the building assuming a 12 2 discount rate If you pay this amount, what is the indicated initial cap rate b If you expect that NOI will remain constant at $100,000 forever, what is the value of the building assuming a 12 2 discount rate If you pay this amount, what is the indicated initial cap rate

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Assume the market value of the subject site (land only) is $270,000. You estimate that the cost to construct the improvements to the subject property

Assume the market value of the subject site (land only) is $270,000. You estimate that the cost to construct the improvements to the subject property would be $350,000 today. In addition, you estimate that accrued depreciation on the subject is $50,000. What is the indicated value of the subject using the cost approach?

Replacement costs have been estimated as $300,000 for a property with a 70-year economic life. The current effective age of the property is 15 years. The value of the land is estimated to be $125,000. What is the estimated market value of the property using the cost approach, assuming no external or functional obsolescence?

A comparable property sold 10 months ago for $98,500. If the appropriate adjustment for market conditions is 0.30% per month (with compounding), what would be the adjusted price of the comparable property?

You find two properties that have sold twice within the last two years. Property A sold 22 months ago for $98,500; it sold last week for $108,000. Property B sold 20 months ago for $105,000; it sold two weeks ago for $113,500. Assuming no compounding, what is the average monthly rate of change in sale prices?

Data for five comparable income properties that sold recently are shown below:

Property	NOI	Sale Price	Overall Rate
A	$ 57,800	$566,600	0.1020
B	49,200	496,900	0.0990
C	63,000	630,000	0.1000
D	56,000	538,500	0.1040
E	58,500	600,000	0.0975

What is the indicated overall rate (R O )?

Use the following property data

Cash flow from operations:

Year 1 2 3 4 5

NOI $150,000 $150,000 $150,000 $150,000 $150,000

Debt Service $125,000 $125,000 $125,000 $125,000 $125,000

Cash Flow at sale:

Sale Price: $2,000,000

Cost of sale: $125,000

Mortgage balance: $1,500,000

a. Assuming the going-in capitalization rate is 8.00 percent, compute a value for the property using direct capitalization.

b. Assuming the required yield/return on unlevered cash flows is 10 percent, and that the property will be held by a buyer for five years, compute the value of the property based on discounting unlevered cash flows.

c. Assuming the relevant required yield/return on levered cash flows is 15 percent, and that the property will be held by a buyer for five years, what is the present value of the levered cash flows?

7. You are estimating the value of a small office building. Suppose the estimated NOI for the first year of operations is $100,000.

a. If you expect that NOI will remain constant at $100,000 over the next 50 years and that the office building will have no value at the end of 50 years, what is the present value of the building assuming a 12.2% discount rate? If you pay this amount, what is the indicated initial cap rate?

b. If you expect that NOI will remain constant at $100,000 forever, what is the value of the building assuming a 12.2% discount rate? If you pay this amount, what is the indicated initial cap rate?