Property Valuation
A Colorado appraiser calculating 'economic rent' for an income property must consider:
AOnly the amount currently specified in existing leases
BWhat the space would rent for in the open market at the time of appraisal, regardless of current lease terms✓ Correct
COnly rents from comparable properties that have been vacant for less than 30 days
DOnly the owner's target rent rate
Explanation
Economic (market) rent is what the space would command in the current open market, reflecting current supply and demand. It may differ from contract rent (what tenants are currently paying).
Related Colorado Property Valuation Questions
- In the income approach to value, the capitalization rate (cap rate) is calculated as:
- Colorado's state-licensed appraisers may appraise property valued up to what threshold without a certified appraiser?
- A Colorado appraiser is asked to do a 'drive-by' (limited scope) appraisal rather than a full interior appraisal. This is an example of:
- When a Colorado appraiser 'reconciles' value indications from multiple appraisal approaches, this means:
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- Under Colorado appraisal standards, USPAP requires that an appraiser's report include:
- When an appraiser applies the 'matched pairs' analysis in Colorado, they are:
- A Colorado investment property generates an annual NOI of $45,000 and comparable properties are selling at a 6% cap rate. What is the indicated value?
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