Property Valuation
A Massachusetts commercial tenant pays rent of $20 per square foot for a 5,000 sf space. Annual rent is:
A$100,000✓ Correct
B$20,000
C$500,000
D$1,000,000
Explanation
Annual rent = 5,000 sf × $20/sf = $100,000. Using the values given ($20), apply the appropriate formula.. The correct answer is $100,000.. This is a common calculation on the Massachusetts real estate exam.
Related Massachusetts Property Valuation Questions
- The 'operating expense ratio' for a Massachusetts income property is calculated as:
- In Massachusetts, the gross rent multiplier (GRM) is calculated as:
- In the cost approach, the 'reproduction cost' is the cost to build:
- Functional obsolescence in a property refers to:
- An appraiser finds that a comparable home sold for $420,000. It has a garage worth $15,000 that the subject property lacks, and the comparable's lot is $10,000 smaller than the subject's. What is the adjusted sale price?
- The income approach formula is:
- A Massachusetts appraiser identifies a comparable sale that closed 18 months ago. The appraiser should:
- A Massachusetts commercial property has a Net Operating Income of $120,000 and a capitalization rate of 6%. The estimated value using the income approach is:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →