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Question:
____
The vacancy level and rental income will fluctuate as supply increases or demand grows or shrinks.
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Each unit in a duplex rents for $2,000 per month. With a price of $240,000, the monthly gross multiplier is ____
120.
Return on investment (ROI) comes in the form of profit, while return of investment comes in the form of ____
depreciation.
A property is valued at $300,000 with a 5% capitalization rate (cap rate). If the prospective buyer wants an 8% return on their money, the property’s valued would be ____
$187,500.
The term “highest and best use” can best be defined as:
the use that creates the greatest net return.
To calculate replacement cost, compute the cost to replace ____
an equally desirable property with the same utility value.
Which of the following statement regarding capitalization rates is least correct?
Decreasing the risk of loss increases the cap rate.
The first step in the appraisal process is to ____
define the problem.
Based on recent comparable sales, an agent’s opinion of a property’s fair market value (FMV) is referred to as a(n) ____
broker price opinion (BPO).
When a residence has a physical age of 20 years, but the appraiser notes the building has the appearance of being only 10 years old, the appraiser is referring to ____
effective age.
Which of the following is not an example of functional obsolescence ____
proximity of obnoxious nuisances.
The most common approach used by an appraiser in the appraisal of a single family residence (SFR) is ____
market comparison.
In using the capitalization process, which of the following cannot be deducted to determine the net income?
Debt service.
To calculate a capitalization rate (cap rate), the appraiser uses which of the following methods ____
Any of the above.
Which of the following is not a force that influences value?
Demand.
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