Real Estate Appraisal

QUESTION 25

1. The rate of return used to calculate the present value of a property in Yield Capitalization (Discounted Cash Flow) is known as the:

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

1 points

QUESTION 26

1. A small office building has a Potential Gross Income of $30,000 and an Effective Gross Income of $27,000. What is the Vacancy and Collection Loss?

   		10%
   		5%
   		7%
   		8%

1 points

QUESTION 27

1. The appraiser is valuing a property using the Cost Approach (s)he determines the land is worth $500,000. The hard costs are $1,000,000 and soft costs are $200,000. The market requires an entrepreneurial incentive equal to 10% of hard and soft costs. Physical deterioration is 10%. What is the value of the property?

   		$2,176,000
   		$1,688,000
   		$1,700,000
   		$1,890,000

1 points

QUESTION 28

1. In order, the 3 forms of obsolescence are:

   		Physical, Functional & External
   		External, Physical, & Functional
   		Functional, Superadequacy, Inadequacy
   		Locational, Physical, External