Property Valuation
A North Dakota appraiser values a medical office building using the income approach. The stabilized annual NOI is $85,000 and an appropriate cap rate is 7.5%. What is the indicated value?
A$1,000,000
B$1,100,000
C$1,133,333✓ Correct
D$1,200,000
Explanation
Value = NOI / Cap Rate = $85,000 / 0.075 = $1,133,333.
Related North Dakota Property Valuation Questions
- A Minot, ND home appraiser uses a sale that occurred 18 months ago. This may be a concern because:
- A North Dakota apartment building's value by the income approach is $1,200,000 and by the sales comparison approach is $1,150,000. The appraiser should reconcile these figures by:
- What does 'depreciated cost' mean in the North Dakota cost approach to appraisal?
- A North Dakota property appraiser's opinion of value differs significantly from the sale price. The appraiser should:
- Which factor would MOST likely increase farmland values in the Red River Valley of North Dakota?
- The sales comparison approach to value requires the appraiser to:
- An appraiser's 'market value' definition assumes:
- An appraisal is different from a CMA (Comparative Market Analysis) because:
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →