Real Estate Appraisal

QUESTION 21

1. The subject property is a free-standing Walgreens in Virginia Beach that is expected to have an NOI next year of $1,500,000. The appraiser uncovers 5 comparable sales that all indicate overall rates of 6%. What is the value of the subject property?

   		$21,000,000
   		$32,000,000
   		$25,000,000
   		$26,500,000

1 points

QUESTION 22

1. The rate of return used to calculate the value of the propertys reversion is known as the:

   		Overall Cap Rate
   		Reversion Cap Rate
   		Internal Rate of Return
   		Effective Gross Income Multiplier

1 points

QUESTION 23

1. The subject property is a supermarket anchored shopping center in a major suburban area. It has 32 tenants, 3 vacant spaces and a variable income stream. The most applicable approach to value is most likely the:

   		Cost Approach
   		Sales Comparison Approach
   		Income Approach
   		Extraction Approach

1 points

QUESTION 24

1. The subject is a single tenant industrial building leased at a flat rate for the next 10 years. Which Income Approach method is the most applicable?

   		Direct Capitalization
   		Extraction
   		Allocation
   		Yield Capitalization