Property Valuation
When appraising a Tennessee property using the income approach, 'effective gross income' is calculated as:
APotential gross income minus vacancy and collection losses✓ Correct
BNet operating income plus operating expenses
CGross rent multiplier times monthly rent
DCapitalized value of net operating income
Explanation
Effective gross income = Potential gross income − Vacancy and collection losses. It represents the income actually expected to be collected.
Related Tennessee Property Valuation Questions
- In the income approach, effective gross income (EGI) is calculated as:
- The effective age of a building refers to:
- The appraised value established in a residential appraisal is most accurately described as:
- The Tennessee Appraiser Certification and Licensure Board (TACLB) is the state agency that:
- The principle of conformity states that value is maximized when:
- In Tennessee, a certified general appraiser is qualified to appraise:
- A building has an economic life of 50 years and an effective age of 10 years. Its remaining economic life is:
- The gross rent multiplier (GRM) approach is best suited for:
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