Property Valuation
A Utah appraiser using the income approach divides NOI by the cap rate to find the:
AAnnual income
BValue of the property✓ Correct
CGross rent multiplier
DDepreciation amount
Explanation
Value = NOI ÷ Cap Rate. This formula converts the property's income stream into an indication of market value in the income approach to appraisal.
Related Utah Property Valuation Questions
- In a declining Utah real estate market, a property listed and sold quickly at a competitive price is called:
- The capitalization rate (cap rate) in real estate appraisal represents:
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- In the income approach, what does effective gross income (EGI) represent?
- When an appraiser uses paired sales analysis in the sales comparison approach, the purpose is to:
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