Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following capitalization rates for comparable properties were collected in the marketplace. Comparables most similar to the subject property were given higher weights: Comparable Capitalization

The following capitalization rates for comparable properties were collected in the marketplace. Comparables most similar to the subject property were given higher weights:

Comparable Capitalization Rate (%) Weight

A 9.45 10%

B 9.82 30%

C 10.46 20%

D 10.25 20%

E 9.72 20%

Sum of weights = 100%

a.What is the weighted mean comparable cap rate?

b.If the subject property has a net operating income of $99,800. What would its market value be?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the weighted mean comparable capitalization rate you need to multiply each capitalizati... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Principles A Value Approach

Authors: David C Ling, Wayne Archer

5th edition

77836367, 978-0077836368

More Books

Students also viewed these Finance questions