In Alaska, the 'principle of anticipation' states that value is based on:
Why The expected future benefits of owning the property Is Correct
Answer B: The expected future benefits of owning the property
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
- In Alaska, a seller's duty to disclose permafrost conditions on a residential property is based on which principle?Environmental
- The income approach to value is MOST appropriate for valuing which Alaska property type?Property Valuation
- The 'income approach' to value is MOST appropriate for which type of Alaska property?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
- The appraisal approach most commonly used to value single-family residential properties in Alaska is the:Property Valuation
- An Alaska property sells for $500,000. The buyer gets a loan for $400,000. The lender requires an appraisal. The appraiser values the property at $480,000. What is the maximum loan the lender will approve at 80% LTV based on appraised value?Finance
- An Alaska purchase agreement states that the buyer's offer will expire at 5:00 PM on Friday. The seller signs the acceptance at 4:45 PM on Friday but it is not emailed to the buyer until 5:30 PM. The contract is most likely:Contracts
- An Alaska buyer's contingency clause states the offer is contingent upon the property appraising at or above the purchase price. If the appraisal comes in below the purchase price, the buyer may:Contracts
Key Terms to Know
A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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 →