Property Valuation
In the income approach, effective gross income (EGI) differs from potential gross income (PGI) because EGI:
AIncludes estimated future rent increases
BSubtracts vacancy and collection loss from PGI✓ Correct
CAdds operating expenses back to PGI
DIs only used for commercial properties
Explanation
EGI = PGI − Vacancy and Collection Loss. PGI assumes 100% occupancy; EGI reflects realistic income after accounting for vacant units and uncollected rent.
Related New Hampshire Property Valuation Questions
- The gross income multiplier (GIM) is used for:
- A NH appraiser must complete what minimum education before being licensed as a trainee appraiser?
- When appraising a lakefront cottage in the NH Lakes Region, an appraiser places significant weight on the comparable sales approach. This is most appropriate because:
- Functional obsolescence in a New Hampshire property is best exemplified by:
- When appraising a White Mountains ski resort-adjacent property in NH, an appraiser must consider:
- An appraiser in Nashua, NH determines that the highest and best use of a commercial corner lot is a mixed retail/residential development rather than single-family residential. This conclusion:
- When appraising a New Hampshire lakefront property, the 'water frontage' (linear footage of shoreline) is typically:
- An appraiser preparing a URAR (Uniform Residential Appraisal Report) for a Concord, NH single-family home is required to certify that they:
Practice More New Hampshire Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Hampshire Quiz →