What is an 'as stabilized' value in Delaware commercial real estate appraisal?
Why The estimated market value of a property assuming it has reached stabilized occupancy (typical market vacancy), used when the property is currently vacant or being developed Is Correct
Answer B: The estimated market value of a property assuming it has reached stabilized occupancy (typical market vacancy), used when the property is currently vacant or being developed
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.
Key Property Valuation Terms in This Question
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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
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