An Alaska industrial property generates an NOI of $120,000. Similar industrial properties have sold at cap rates ranging from 6.5% to 8.5%. The indicated value range is:
Why $1,411,765 to $1,846,154 Is Correct
Answer C: $1,411,765 to $1,846,154
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
People Also Study
Related Alaska Questions
- A commercial property in Juneau generates $120,000 in NOI annually. The prevailing cap rate for similar properties is 8%. What is the estimated value?Property Valuation
- An Alaska appraiser notes that several properties in a neighborhood sold at significant discounts because of a nearby industrial odor. This is an example of value lost to:Property Valuation
- An Alaska appraiser calculates a capitalization rate of 8% for an income property with an NOI of $40,000. Using direct capitalization, the indicated property value is:Property Valuation
- An Alaska appraiser is estimating the value of a 20-unit apartment complex. The appraiser determines the NOI is $95,000 and selects a cap rate of 7%. The indicated value by the income approach is:Property Valuation
- An adjustable-rate mortgage (ARM) in Alaska has an initial rate of 4% and caps at 2% per year. If rates rise, the maximum rate increase in one year is:Finance
- What is the transfer tax on an Alaska property selling for $400,000 if the rate is $1 per $500 of value?Real Estate Math
- An Alaska buyer purchased a home for $380,000 and sold it 3 years later for $425,000. What was the percentage increase in value?Real Estate Math
- An Alaska property is assessed at 60% of its $500,000 market value. The tax rate is $15 per $1,000 of assessed value. What is the annual property tax?Real Estate Math
Key Terms to Know
A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →