CGA EXACT QUESTIONS WITH COMPLETE
ANSWERS ALREADY GRADED A+
The "as vacant" highest and best use is for retail and the as improved
highest and best use is for single tenant-office .... What principle underlies
the valuation process? - correct Answers ✔✔ -Consistent Use
A property's site is leased for $40,000 per year, which is considered the
market rate. The site represents 35% of the total value. The overall cap
rate is 10% and the building cap rate is 11%. What is the site value? -
correct Answers ✔✔ -$491,228
A property was purchased for $325, 000 and the buyer expected to hold
the property for five years. The pro forma projections call for a net oper.
incoome of $30,000 for Yrs 1 & 2, $35,000 for Yrs 3& 4 and $37,000 for Yr.
5. The property is expected to increase in value to $375k at the end of the
holding period. What is the overall capitalization rate from the
investment? - correct Answers ✔✔ -12.5%
In preparing a market value appraisal with retrospective date of value, is
the appraiser allowed to consider any info after the eff. date of value, and
why? - correct Answers ✔✔ -Yes, the appraiser may use data subsequent
to the eff. date as a confirmation of trends.
Which of the following demand-side economic factors creates value? -
correct Answers ✔✔ -Desire and effective purchasing power
*"Always Appears" - If the overall cap rate for the fee simple interest is
10% and the leased fee cap rate is 8.5%, market net operating income is
$20,000 and contract net operating income is $12,500. What is the
implied leasehold cap rate? - correct Answers ✔✔ -14.17%
A staff appraiser, employed by a local bank for 5 years, plans to leave the
bank to open an independent appraisal business. Must the appraiser
, remove all work files for assignments completed for the bank? - correct
Answers ✔✔ -No; the appraiser may make arrangements with the bank to
access or retrieve the files.
The subject property is a 5,000 sf single tenant office building that is
currently leased for $9.00 per sf with three years remaining on the lease...
vacancy credit loss 10% ... owner expenses 25% of of eff. gross income ...
market rent $12 per sf per year. Market overall rates 9.5%. a sale of a
leasehold interest sold for $29,000 with a net leasehold inocme of $12000
per year with 3 yrs remaining. What is the value of the leasehold estate,
rounded to the nearest $1000 - correct Answers ✔✔ -$36,000
A property sold for $330, 000 with 10% down, financed at 7.5% interest
for 20 years with monthly payments. The property has a gross annual
income of $42k. / Vacancy / collection loss totals 8% and expenses are
$8k per year. What is the equity dividend rate indicated by this sale? -
correct Answers ✔✔ -5.85%
The market value of a property is $2,300,000 at stabilized occupancy. The
direct building cost is $1,500,000. The indirect costs are $200,000 and the
land costs are $125,000. What is the indicated entrepreneurial profit? -
correct Answers ✔✔ -$475,000
What term refers to a division of a total market based on the preferences
of buyers and sellers? - correct Answers ✔✔ -Submarket
The subject property has 200 acres on improved pasture, 300 acres of
native pasture, and 500 acres of woodland. Comp A has 300 acres of
improved pasture, 300 acres of native pasture, and 400 acres of
woodland. Comp A sold for $1050 per acre. Assuming native pasture sells
for 80% of improved pasture prices and woodland sells for 40% of
improved pasture prices, what is the per acre value of the subject
property? - correct Answers ✔✔ -$960 per acre
An apartment complex was purchased 5 yrs ago for $850k, the owner received the
following net cash flows:
1: 50k
2: 52k
3: 48k ("sometimes the number is another 50k")
4: 53k
5: 54k
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Wisdoms. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
