Property Valuation
An appraiser in North Carolina using the income approach would NOT include which of the following in operating expenses?
AProperty taxes
BManagement fees
CMortgage payments (debt service)✓ Correct
DInsurance premiums
Explanation
Debt service (mortgage payments) is NOT an operating expense in the income approach. NOI is calculated before debt service to reflect the property's earning power independent of financing.
Related North Carolina Property Valuation Questions
- The economic life of an improvement is the period during which:
- In the cost approach, reproduction cost is the cost to:
- The income approach to value is most appropriate for which type of NC property?
- Regression in real estate value means:
- In NC, county property tax assessments are supposed to reflect what percentage of market value?
- Which appraisal approach is typically given the most weight when appraising a single-family home in Greensboro, NC?
- The principle of 'progression' in real estate appraisal states that:
- The 'principle of substitution' underpins which appraisal approach?
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