Property Valuation
In the income approach, 'effective gross income' is calculated as:
AA. Potential gross income minus operating expenses
BB. Potential gross income minus vacancy and collection loss✓ Correct
CC. Net operating income plus debt service
DD. Gross rent times the gross rent multiplier
Explanation
Effective Gross Income (EGI) = Potential Gross Income (PGI) − Vacancy and Collection Loss. EGI represents the income actually expected to be collected and is the starting point for deriving NOI.
Related Georgia Property Valuation Questions
- The reproduction cost in the cost approach refers to:
- Assessed value in Georgia is the value used to:
- When a comparable sale sold for more than the subject property, the appraiser makes a:
- An appraiser uses the 'Marshall Valuation Service' (or similar cost data service) to estimate:
- In the income approach, what formula is used to calculate property value?
- The principle of substitution states that:
- In a 'seller's market,' home values tend to:
- Plottage (assemblage) refers to the increase in value when:
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →