Property Valuation
A Harrisburg commercial property generates $120,000 NOI annually and is sold at a 8% cap rate. What is the sale price?
A$960,000
B$1,200,000
C$1,500,000✓ Correct
D$816,000
Explanation
Value = NOI ÷ Cap Rate = $120,000 ÷ 0.08 = $1,500,000.
Related Pennsylvania Property Valuation Questions
- In Pennsylvania, the 'excess land' versus 'surplus land' distinction in an appraisal means:
- The appraisal concept of 'highest and best use' requires the use to meet all of the following criteria EXCEPT:
- An appraiser inspecting a Philadelphia brownstone notes evidence of a previous fire that was repaired. This represents which type of depreciation?
- A Pennsylvania appraiser performing a review appraisal (review of another appraiser's report) must:
- The principle of contribution in appraisal states that:
- A Pennsylvania appraiser must sign a certification with their appraisal report that includes statements about:
- The 'principle of substitution' underlying appraisal theory states that:
- An appraiser in the Pocono Mountains region of Pennsylvania values a ski resort property using primarily which approach?
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →