REE 4103 FINAL EXAM STUDY QUESTIONS AND ANSWERS TOP GRADED 2024
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Course
REE 4103
Institution
REE 4103
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 app...
REE 4103 FINAL EXAM STUDY QUESTIONS AND ANSWERS TOP GRADED 2024
REE 4103 FINAL EXAM STUDY
QUESTIONS AND ANSWERS TOP
GRADED 2024
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 used in valuing - properties that do not
generate income
The monthly rental being paid for a comparable rental property is called - contract rent
The procedure used to convert future benefits into present value is - yield capitalization
(discounted cash flow models)
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 - Fixed lease
The basic formula for property valuation via income capitalization is - discounted cash
flow analysis
V = I/R
, REE 4103 FINAL EXAM STUDY QUESTIONS AND ANSWERS TOP GRADED 2024
Which approach would probably be given the most weight in appraising a large office
building? - Income approach
Which principle of value best affirms that value is the present worth of expected future
benefits? - Anticipation
The appraisal approach that normally would be most useful in valuing investment
property is the: - Income approach
Value is said to be the present worth of future benefits. This defines the principle of -
Net Present Value
The income capitalization approach supports what two basic methodologies? - 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: - 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? - Step-up lease
A lease which provides for rental changes annually tied to the consumer price index is
what kind of lease? - 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? - Reevaluation
lease
The Landlord pays for all the expenses in a: - Gross lease
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