Property Valuation
In the income approach, 'effective gross income' (EGI) is calculated as:
APotential gross income minus operating expenses
BPotential gross income minus vacancy and collection losses plus miscellaneous income✓ Correct
CNet operating income plus debt service
DGross rents collected minus management fees
Explanation
EGI = Potential Gross Income (PGI) − Vacancy & Collection Losses + Miscellaneous Income (e.g.
Related Florida Property Valuation Questions
- An appraiser's 'opinion of value' is based on:
- In the cost approach, the formula is: Value = Land Value + Depreciated Cost of Improvements. If a property has a land value of $95,000, replacement cost new of $320,000, and total accrued depreciation of 25%, the indicated value is:
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- Under USPAP (Uniform Standards of Professional Appraisal Practice), which of the following would be a violation?
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- A Florida appraiser performing a 'retrospective' valuation for a divorce settlement in 2020 for a property that was purchased in 2018 would use:
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