Exam (elaborations)
REE 4103 Exam 3 (1)
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Exam of 11 pages for the course REE 4103 at REE 4103 (REE 4103 Exam 3 (1))
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REE 4103 Exam 3all are used in valuation of income-producing property except: - ANS-income taxes
capitalization is employed in the: - ANS-income approach-income properties
a gross lease is one that: - ANS-landlord pays for all operating expenses
when estimating the market value of an income-producing property, the appraiser will
not consider: - ANS-income taxes attributable
in income capitalization, value is measured as the present worth of the: - ANS-net
operating income+reversion
income capitalization techniques are not typically used in valuing: - ANS-properties that
do not generate income
the monthly rental being paid for a comparable rental property is called: - ANS-contract
rent
the procedure used to covert future benefits into present value is: - ANS-yield
capitalization-DISCOUNTING
when the landlord permits the tenant occupancy and use of the space each year for a
fixed amount of money, the lease is described as: - ANS-fixed lease
the basic formula for property valuation via income capitalization is: - ANS-discounted
cash flow analysis (V=I/R)
which approach would probably be given the most weight in appraising a large office
building? - ANS-income approach (income capitalization)
which principle of value best affirms that value is the present worth of expected future
benefits? - ANS-anticipation
the appraisal approach that normally would be most useful in valuing investment
property is the: - ANS-income approach
, value is said to be the present worth of future benefits. this defines the principle of: -
ANS-discounting
the income capitalization approach supports what two basic methodologies? -
ANS-direct capitalization and yield capitalization
these models discount the expected future income from property with any reversion
value or sale proceeds to estimate the property's present (market) value: -
ANS-discounted cash flows
A lease with the following annual payments: Year 1: $10,000 Year 2: $12,000 Year 3:
$14,000 Year 4: $16,000; would be called what type of lease? - ANS-step-up lease or
variable lease
A lease which provides for rental changes annually tied to the consumer price index is
what kind of lease? - ANS-index lease
A lease which requires the landlord and tenant to arbitrate the amount of the lease upon
the tenant exercising a lease extension option is what type of lease? - ANS-revaluation
lease
The Landlord pays for all the expenses in a: - ANS-gross lease
The Landlord pays for only the structural repairs in what type of lease - ANS-triple net
lease
In fee simple valuations, all rentable space is estimated at what levels? - ANS-market
rent
At the time of an appraisal a warehouse is leased to a quality tenant for $9.00/square
foot. The rent obtainable in the market at the same time is $6.00/square foot. The lease
with the landlord is termed a - ANS-positive leased fee for the landlord, but a negative
leasehold for the tenant
Rent pursuant to a lease that is paid over and above the guaranteed minimum based on
gross sales of a retail tenant is called: - ANS-overage/percentage rent
The level of sales at which the percentage rent in a lease exactly equals the base rent is
called the? - ANS-Natural Break point
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