REAE 3325 Unit 1 Section 5 Quiz Review with Complete Solutions
3 views 0 purchase
Course
REAE 3325
Institution
REAE 3325
REAE 3325 Unit 1 Section 5 Quiz Review with Complete SolutionsREAE 3325 Unit 1 Section 5 Quiz Review with Complete SolutionsREAE 3325 Unit 1 Section 5 Quiz Review with Complete SolutionsREAE 3325 Unit 1 Section 5 Quiz Review with Complete Solutions
Highest and best use analysis is only necessary f...
REAE 3325 Unit 1 Section 5 Quiz Review
with Complete Solutions
Highest and best use analysis is only necessary for a vacant piece of land with no
zoning requirements. - ANSWER-False
Which of the following is not a form of depreciation utilized in the Cost Approach? -
ANSWER-Accounting depreciation
Cap rates can be determined by dividing the ___________ by the _____________. -
ANSWER-Price (or value); NOI.
In Texas, USPAP is maintained by the Texas Real Estate Commission. - ANSWER-
False
In an income proforma, subtracting Operating Expenses and any Capital Expenditures
from Effective Gross Income results in ______________. - ANSWER-Net Operating
Income
What is the sales price if a building sells on a 9% cap rate with an NOI of $100,000? -
ANSWER-$100,.09 = $1,111,111.11
The Effective Gross Income Multiplier can be determined by dividing the ___________
by the ___________. - ANSWER-derived valuation; effective gross income.
In the Sales Comparison Approach, if the subject has a better location than the
comparable, the appraiser would need to adjust the comparable value: - ANSWER-Up
What is the cap rate if a building sells for $2,000,000 with an NOI of $200,000? -
ANSWER-$2,000,000 / $200,000 = 10
What is the cap rate if a building sells for $12,000,000 with an NOI of $800,000? -
ANSWER-$12,000,000 / $800,000 = 15
Sales rates can be determined by dividing ___________ by the ___________. -
ANSWER-NOI; cap rate.
What is the sales price if a building sells on a 7% cap rate with an NOI of $100,000? -
ANSWER-$100,.07 = 1,428,571.43
If the Effective Gross Income is $100,000 and the derived valuation was $1,000,000,
what was the Effective Gross Income Multiplier? - ANSWER-10
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 NursingTutor1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
