Property Valuation
A North Dakota property manager hires a licensed appraiser to determine market rent for a commercial space. This type of appraisal estimates:
AThe property's market value
BMarket rental rate—what a willing tenant would pay and a willing landlord would accept in an arm's-length transaction✓ Correct
CThe property's assessed value
DThe tenant's ability to pay
Explanation
A rental appraisal or market rent study estimates the market rental rate for a space based on comparable leases in the market. It helps landlords set competitive rents and is used in lease negotiations and income property appraisals.
Related North Dakota Property Valuation Questions
- The income approach to value is most appropriate for:
- In North Dakota, a property with a low cap rate compared to the market suggests the property is:
- External (economic) obsolescence is caused by:
- What is a 'gross income multiplier' (GIM) used for in North Dakota commercial property valuation?
- Capitalization rate (cap rate) is calculated by:
- In North Dakota, which of the following is NOT a standard method of depreciation recognized in the cost approach to appraisal?
- Which type of value does a North Dakota appraiser typically estimate for mortgage lending purposes?
- Which North Dakota appraisal principle holds that a property's value is influenced by the anticipated benefits it will provide in the future?
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