Property Valuation
In Alaska, which of the following properties would MOST likely receive the HIGHEST capitalization rate from an appraiser?
AA Class A office building with long-term creditworthy tenants in Anchorage
BA small retail strip in a rural Alaska community with high vacancy and uncertain income✓ Correct
CA well-maintained 8-unit apartment complex in Fairbanks
DA NNN-leased fast food property with a 20-year lease
Explanation
Higher cap rates reflect higher risk. A rural strip center with high vacancy and uncertain income represents significantly higher investment risk than stabilized properties with creditworthy tenants.
Related Alaska Property Valuation Questions
- What does a capitalization rate (cap rate) measure in real estate investment analysis?
- In Alaska, the 'income multiplier' approach is less precise than direct capitalization because it:
- The principle of plottage (assemblage) in real estate valuation means that:
- Which of the following is TRUE about the principle of conformity in real estate appraisal?
- An appraiser in Alaska determines a comparable property sold in an estate sale at 10% below market value. To use this comparable, the appraiser should make:
- An Alaska property generates annual gross rental income of $36,000. The vacancy and collection loss is estimated at 5%, and operating expenses are $12,000. What is the net operating income (NOI)?
- In the sales comparison approach, a positive adjustment to a comparable sale is made when the comparable is:
- An appraiser uses an income multiplier of 9.5 for a property with annual gross income of $48,000. The indicated value is:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →