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:

Group of answer choices

Cost Approach

Income Approach

Sales Comparison Approach

Extraction Approach

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?

Group of answer choices

Allocation

Extraction

Direct Capitalization

Yield Capitalization

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

Group of answer choices

Reversion Rate

Effective Gross Income Multiplier

Internal Rate of Return

Overall Rate

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?

Group of answer choices

10%

5%

7%

8%

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?

Group of answer choices

$1,700,000

$1,890,000

$1,688,000

$2,176,000

In order, the 3 forms of obsolescence are:

Group of answer choices

Locational, Physical, External

Physical, Functional & External

Functional, Superadequacy, Inadequacy

External, Physical, & Functional

The form of obsolescence that can be caused by a superadequacy or inadequacy is known as:

Group of answer choices

Physical Deterioration

Functional Obsolescence

Market Obsolescence

External Obsolescence

Use the following information to answer questions 30-32.

We have been asked to value an office building in Richmond. Based on our market research, we have developed the following cash flow. Based on the same research, we have determined that should use a 5-year holding period (investment horizon). A reasonable yield rate (aka internal rate of return IRR) is 10%. A reasonable terminal capitalization rate (rate of return applied to determine the resale) is 8%. There are no deductions for the cost of reselling the property.

30

What is the assumed vacancy and collection loss in year 1 as a percentage?

Group of answer choices

6%

5%

7%

8%

Question 31

What is the value of the property at the end of year 5?

Group of answer choices

$852,413

$695,570

$768,444

$869,463

Question 32

What is the present value of the property?

Group of answer choices

$678,988

$866,498

$787,499

$1,045,014

A local 10,000 square foot retail building is 100% occupied by a single tenant. The lease just started and continues for 20 years. The rent is $10.00 per square foot per year. The landlord pays all the expenses associated with the building. The expenses total $3.00 per square foot per year, and we have determined that they are market-oriented. From a market survey, it is our opinion that 7% is a reasonable vacancy allowance and 2% is a reasonable allowance for collection loss. What is the Net Operating Income?

Group of answer choices

$61,000

$70,000

$50,000

$63,700

From Question 31 above, if a market oriented overall rate is 8.5%, what is the value of the property?

Group of answer choices

$817,590

$717,647

$734,512

$699,789

In the sales comparison approach, the adjustment process is designed to

Group of answer choices

Comply with secondary market guidelines

Compensate for the physical and economic differences between the comparables and subject property by adjusting the sale prices of the comparables

Compensate for the physical and economic differences between the comparables and subject property by adjusting the sale prices of the subject

Prove that the value opinion is correct.

Please help