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Question
A new income property is being appraised and you have very few improved sales, and no vacant land sales to estimate land value. Assume the following, and solve for the land value, using the land residual capitalization method.| Net operating income | $64,000 |
| Building cost | $400,000 |
| Interest rate | 8% |
| Recapture rate | 2% |
b. $300,000
c. $100,000
d. $500,000
Answer
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Related questions
Q:
In a recent appraisal of a three bedroom home in a good location, the appraiser has analyzed three comparable sales. A summary follows:DataComparable #1 Comparable #2 Comparable #3Price paid$250,000$225,000$295,000LocationInferior EqualSuperior Lot sizeLarger than subject Smaller than subjectSmaller than subjectAmenities & ConditionEqual to subjectSuperior to subjectSuperior to subjectDollar Adjustments Indicated by Market StudyLocation difference = $30,000; Lot size difference = $25,000;Amenities and condition difference = $10,000;Problem:Relying upon the comparables and the adjustments indicated, what is the best value conclusion for the subject property?a. $220,000 b. $240,000c. $255,000 d. $270,000
Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
If the annual gross income multiplier is 8.0 and monthly rents are $5,000, what is the indicated value of the subject property?a. $400,000 b. $ 40,000c. $480,000 d. $750,000
Q:
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b. Gross income less vacancy and collection losses
c. Gross income less allowable expenses
d. None of the above
Q:
Of the following, which does not suggest functional obsolescence?
a. A conforming house in poor condition
b. An illegal structure
c. A misplaced improvement
d. An over-improvement