Property Valuation
An appraiser using the income approach determines that a Kentucky property's net operating income is $30,000. At a 7.5% cap rate, the estimated value is:
A$375,000
B$400,000✓ Correct
C$425,000
D$450,000
Explanation
Value = NOI ÷ Cap Rate = $30,000 ÷ 0.075 = $400,000. To solve this, multiply the relevant values: $30,000 at 7.5%.. The correct answer is $400,000.. This is a common calculation on the Kentucky real estate exam.
Related Kentucky Property Valuation Questions
- The principle of conformity in Kentucky real estate valuation holds that:
- In the sales comparison approach, the appraiser makes adjustments to the comparable sales to account for:
- In Kentucky, which of the following would reduce a property's market value?
- In the cost approach, the formula for estimating value is:
- A Kentucky residential property's value is depressed because it is located next to a busy commercial truck stop. This is an example of:
- The principle of contribution states that:
- A Kentucky appraiser is asked to appraise a church building. The most appropriate valuation approach is likely:
- The principle of substitution in Kentucky property valuation states:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →