Capitalization - Study guides, Class notes & Summaries

Scope of Work Rule - ANSWER-1. Identify the problem to be solved 2. Determine and perform the scope of work necessary to develop credible assignment results 3. Disclose the scope of work in the report Scope of work acceptability - ANSWER-When it meets or exceeds: 1. Expectations of parties who are regularly intended users for similar assignments and 2. What an Appraiser's peers actions would be in performing the same or similar assignments Economic Basis of Model Building - ANSWER-Sup...

Anticipation - ANSWER-Value is created by the expectation of benefits to be derived in the future. Leverage - ANSWER-The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds. Chattel mortgage - ANSWER-A mortgage only on persona property Yo - ANSWER-Also known as the discount rate, reflects the return on investment. Safe rate - ANSWER-Base rate on the safest investments such as government insured investments (Yo). Risk rate - ANSWER-An amount ...

Property Tax is included in which of the following? Correct Answer- As part of the data analysis step in the appraisal process, it is necessary to consider the highest and best use of the property in question. In regards to determining the highest and best use, all of the following are true except: Correct Answer- Direct capitalization applies multipliers and rates to: Correct Answer-First year Income Which of the following is NOT an example of the use of direct capitalization? Correct ...

ARGUS Enterprise Certification Exam Review 2023 with complete solution ARGUS Enterprise merges three industry standard solutions: ARGUS Valuation - DCF , ARGUS Asset Management, and ARGUS Valuation - Capitalization A) True B) False A) True In ARGUS Enterprise you can utilize shortcut keyboard commands to navigate within certain sections of the program. A)True B) False A) True In AE, a us er can add over 100 properties into a portfolio. A)True B)False A)True Which is a benefi...

All are used in valuation of income-producing property except - income taxes Capitalization is employed in - income approach - income properties A gross lease is one that - tenant pays rent and landlord pays expenses When estimating the market value of an income-producing property, the appraiser will not consider: - income taxes attributable In income capitalization, value is measured as the present worth of the - NOI + Reversion Income capitalization techniques are not typically ...

Co ownership types: - - Condominium - Cooperative - Timeshare Land - may include more than the earth, may also include improvements to the land personal property - things that are movable & not permanently affixed to the land Ownership rights - Real estate provides people with this "bundle of rights" - Rights to: Use/Occupy Sell Lease Give away Do all or none "real property" vs. real estate security privacy location User markets - characterized by competition among users for ...

CBV Exam Questions & Answers 2024/2025 What are the Three valuation approaches - ANSWERSMarket, Income and Asset (Cost) Capitalization Rate is Equal to - ANSWERSDiscount Rate minus Growth The Typical LTGR assumed - ANSWERS3 to 5 percent Terminal Year Cash Flow is calculated as - ANSWERSLast Projection Year Cash flow multiplied by 1 + LTGR Terminal Gross Value is equal - ANSWERSTerminal Year Cash Flow divided by Capitalization Rate (Percent) Terminal Value Present Value - ANSW...

condominium Severalty ownership of air rights combined with an undivided interest in the common areas of real estate would MOST LIKELY describe a on probation A licensee could be active in the real estate business if his/her license is Agent Kenzie has terminated her relationship with her broker. The broker has returned her license to the BREP. Agent Kenzie has thirty days to place her license in escrow or find another broker Disciplinary actions that can be taken by the ...

Barney Fletcher Practice Exam 1 Questions & Answers (Graded A)Barney Fletcher Practice Exam 1 Questions & Answers (Graded A)Barney Fletcher Practice Exam 1 Questions & Answers (Graded A)Barney Fletcher Practice Exam 1 Questions & Answers (Graded A)Barney Fletcher Practice Exam 1 Questions & Answers (Graded A) Which would NOT be used in the capitalization approach? A. gross income B. operating expenses C. reproduction cost D. allowance for vacancy - ANSWER C. reproduction cost A propert...

Which of the following is most vital or important in planning a subdivision: - ANSWER-Market Analysis When rent is computed on the gross sales of a business occupying real property, the lease is correctly termed: - ANSWER-Percentage Lease What is not an adequate method of transferring property? - ANSWER-Executive Sale What is considered personal property? - ANSWER-Existing Mortgage If an income property is valued at $100,000 based on an 8% capitalization rate, what would be the value...