Question
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?
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Real Estate Principles A Value Approach
Authors: David C Ling, Wayne Archer
5th edition
77836367, 978-0077836368
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