The Capitalization Rate Is Best Described as Quizlet

Scarcity 34 An appraisal report contains all of the following. Vacancy 14 and annual expenses are 21100.


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What capitalization rate was used to obtain a valuation of 542325.

. Using the service of a mortgage brokera buyer borrowed 25000 from private lender. The value of the stock today is the present value of the dividends and the expected stock price discounted at the equity discount rate. Which of the following Best describes a capitalization rate.

An appraiser is responsible for. It cost 320000 new and its site value is 95000. Which of the following statements about capitalization rates is true.

What is the NOI to the. B - relationship between money and desire. C It is a performance measure expressing the relationship between income and property value at a specific point of time.

320000 x 20 64000. The commission rate is 7 on a sale of 250000. If the capitalization rate increases to 7 and the net income remains unchanged what is correct concerning this situation.

Given the following information compute the implied dividend growth rate. Expressed as a percentage the capitalization rate of an asset represents one of the most sound fundamental concepts todays investors can use to determine the rate of return on an investment based on the earnings. CAPITALIZATION RATE NET INCOMEVALUE 13680190000 072 or 72.

The capitalization rate also known as cap rate is used in the world of commercial real estate to indicate the rate of return that is expected to be generated on a real estate investment property. The capitalization rate is best described as. Capitalization rate otherwise known as cap rate is the shorthand description many use to describe the rate of return on a particular real estate investment.

The resulting appraisal report would include reference to. D the two capitalization rates could not be compared because the properties involve different uses. Stephen would best be described as an Real estate asset manager.

C - commodities in. 1 - the value of the property in relation to the gross income the property produces. Thus the higher the risk the higher the CAP rate.

22560 x 6514664Net operating Income NOI. 320000 - 64000 95000 351000 Basic Appraising Procedures Ch 6 - Ch 12 Study Basic Appraising Procedures Ch 6 -. Alaska is categorized as a high-cost area so an additional 50 is added to the loan limit.

An investment property valued at 350000 has a capitalization rate at 6. VALUE NET INCOMECAPITALIZATION RATE From this we get. 150116 150116 150116 2500116 1939.

All of the following are characteristics of value EXCEPT. 3 - the relationship between net operating income and estimated value or cost. If net income on a property is 20000 and the cap rate is 5 the value of the property using the income capitalization method is.

4 - a fixed rate of return for the investor of a commercial property. This situation would be best described by the economic characteristic of. A building has 9 office suites generating annual potential rent of 14800 each.

The lower the the risk the lower the CAP rate. This problem has been solved. Using the capitalization approach to appraise the properties the post office would demand.

B It is the unlevered return on investment in the property. The basic capitalization formula is. B the same capitalization rate as the hardware store.

12 60 20 depreciation. A It is the return on the equity investment. Divide the net operating income by the capitalization rate 20 An appraiser has been employed to estimate the market value of a parcel of vacant land.

What is the dollar amount of the commission. 470 per unitmonth x 41880x1222560. What is the capitalization rate.

The steps in the appraisal process include all of the following Gathering specific data on the subject property. 4 104250. Of the following value is best described as.

2 - an investment propertys fixed cash flow on an annual basis. Rate of return an income property will produce. After the loan costs were deducted a.

CPart of the capitalization rate measures the risk involved in an investment. Introduction To The Real Estate Business flashcards from dee parishs class online or in Brainscapes iPhone or Android app. Economic life of 60 years.

Using a capitalization rate of eight percent what is the indicated value to the nearest 1000. A - present worth of future benefits. Learn faster with spaced repetition.

With a loan guarantee of 104250 a veteran wishing to purchase a home in Alaska would be eligible for a mortgage loan of. Reconsiliations is best described as. Which of the following statements best describes the central concept of the sales comparison approach.

A a lower capitalization rate. C a higher capitalization rate.


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