Property Valuation
A North Dakota office building has a potential gross income of $100,000, vacancy and credit losses of 10%, and operating expenses of $35,000. What is the NOI?
A$52,000
B$55,000✓ Correct
C$46,750
D$65,000
Explanation
EGI = $100,000 × (1 − 10%) = $90,000. NOI = $90,000 − $35,000 = $55,000. To solve this, multiply the relevant values: $100,000, and $35,000 at 10%.. The correct answer is $55,000.. This is a common calculation on the North Dakota real estate exam.
Related North Dakota Property Valuation Questions
- A North Dakota appraiser must disclose a material error discovered after submitting the appraisal report. This is required under:
- A Minot, ND home appraiser uses a sale that occurred 18 months ago. This may be a concern because:
- In North Dakota, appraisers must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) because:
- Which of the following would MOST likely cause an upward adjustment when comparing a comp to the subject property?
- In North Dakota, which of the following is NOT a standard method of depreciation recognized in the cost approach to appraisal?
- A North Dakota appraiser values a large lot and a small lot in the same neighborhood. The smaller lot typically sells for more per square foot because of:
- In North Dakota, which of the following BEST describes 'economic life' of a building?
- In North Dakota, the 'comparable sales grid' used in the sales comparison approach requires an appraiser to make adjustments for differences between the subject property and each comparable. Adjustments are made to:
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 →