Property Valuation
When a New York appraiser determines 'market rent' for a subject property, they are establishing:
AThe rent the current tenant is actually paying
BThe most probable rental income a property would command in an open, competitive market✓ Correct
CThe maximum rent allowed under rent stabilization
DThe rent required to qualify for a mortgage
Explanation
Market rent is the most probable rental income a property would generate in the open market, assuming a willing landlord and tenant with full market knowledge. It may differ from the contract rent (actual rent being paid).
Related New York Property Valuation Questions
- In New York, which of the following is the primary purpose of a property appraisal in a mortgage transaction?
- Effective age in appraisal refers to:
- In New York, the 'principle of conformity' holds that:
- An appraisal is defined as:
- In New York, the 'gross building area' (GBA) of a property differs from 'net rentable area' (NRA) in that:
- An 'effective age' of a building refers to:
- In New York, 'functional obsolescence' in an appraisal refers to:
- A capitalization rate (cap rate) and value have which relationship?
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