Property Valuation
An appraiser is valuing a Florida duplex using the income approach. The property has a gross income of $36,000 and operating expenses of $12,000. Using a 7.5% cap rate, what is the indicated value?
A$320,000✓ Correct
B$360,000
C$400,000
D$480,000
Explanation
NOI = Gross Income - Operating Expenses = $36,000 - $12,000 = $24,000. Value = NOI ÷ Cap Rate = $24,000 ÷ 0.075 = $320,000. Answer A ($320,000) is correct.075 = $320,000. The correct answer is A.
Related Florida Property Valuation Questions
- When an appraiser reconciles the three approaches to value, they assign weight to each approach based on:
- A Florida appraiser is asked to determine the 'market value' of a property. Market value is best defined as:
- When Florida property values in a specific neighborhood are declining, an appraiser applying the principle of 'regression' would expect that:
- Florida's county property appraiser establishes 'just value' for ad valorem tax purposes. 'Just value' is closest to:
- In Florida, the principle of 'contribution' in real estate appraisal states that:
- A Florida appraiser performing an appraisal for estate tax purposes uses which value standard?
- The 'gross rent multiplier' (GRM) method is best used for:
- In Florida real estate, 'plottage value' refers to:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →