Property Valuation
What is a 'market rent' study and how does it relate to Oregon property management and appraisal?
AA study of stock market performance affecting real estate investment
BResearch into the rental rates achievable in the current market for comparable space, used by appraisers for income approach and by property managers for setting rent✓ Correct
CA government survey of all Oregon rents conducted annually
DAn OREA study of property management fees
Explanation
A market rent study analyzes current rental rates for comparable properties in a specific market to determine what a property could realistically rent for at current market rates. Oregon appraisers use market rent to derive contract rent vs. market rent adjustments in the income approach. Property managers use market rent analysis to competitively price their managed properties and advise owners on rent levels.
Related Oregon Property Valuation Questions
- When adjusting comparable sales in the sales comparison approach, adjustments for market conditions (time) reflect which factor?
- Which of the following would INCREASE the value of a property according to appraisal principles?
- Under the income capitalization approach, if a property's capitalization rate increases, the estimated property value will:
- Under the cost approach, 'accrued depreciation' refers to:
- Under the Uniform Standards of Professional Appraisal Practice (USPAP), an appraiser's primary ethical obligation is to:
- An appraiser notes that a comparable sale has a 3-car garage while the subject has only a 2-car garage. The appraiser would make which adjustment to the comparable?
- In the sales comparison approach, 'adjustments' are made to the comparable sales to account for differences between the comparables and the subject property. If a comparable sold for $350,000 but lacks a garage that the subject has (valued at $20,000), the adjusted sale price of the comparable is:
- The 'effective age' of a building in appraisal is:
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