REE4103 Exam Questions With Correct
Answers
Appraisal - answerThe act or process of developing an opinion of value of an asset. The asset
in question could be anything from fine art to machinery and equipment, or even a specific type
of business.
- An appraisal is someone's opinion, rathe than...
EXAM STUDY MATERIALS July 30, 2024 11:26 AM REE 4103 Exam Questions With Correct Answers All are used in valuation of income -producing property except: -rental rates -operating expenses -income taxes -net leasable area - answer✔✔income taxes Capitalization is employed in the: Cost approach Market approach Income approach - income properties Income approach - residential properties - answer✔✔income approach - income properties A gross lease is one that: Tenant pays for all operating expenses Landlord pays for all operating expenses Applies only to comm ercial properties EXAM STUDY MATERIALS July 30, 2024 11:26 AM Rent rises with the cost of living - answer✔✔landlord pays for all operating expenses A lease on a 8,000 square foot industrial building, where the rent is specified as $3,500/month, for a 5 -year term with level income throughout the lea se term. When the lease was negotiated, the tenant received free rent for the first month of each year as a concession. What is the effective rent per square foot per year? - answer✔✔$4.81 Generally, higher overall cap rates are associated with: -more desirable properties -less desirable properties -all investment properties -only residential properties - answer✔✔less desirable properties A property sold for $555,000. The buyer anticipated the potential gross income would be $93,000, the vacancy w ould be 5%, and expenses would be 53% of EGI in the year after the purchase. What is the overall capitalization rate (RO)? - answer✔✔7.48% The appraisal approach that normally would be most useful in valuing investment property is the: -Sales approach -income approach -cost approach -None of the above - answer✔✔income approach An allowance for vacancy and collection loss is estimated as a percentage of: -Net operating income -Before tax cash flow -Effective gross income -Potential gross income - answer✔✔potential gross income In a high rise 100 -unit apartment building there is a basement laundry area that brings in $100 monthly from the concessionaire. The laundry income is:
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