Property Valuation
In Utah, the income capitalization approach uses the overall capitalization rate (OAR). The OAR is derived from:
AThe county's mill rate
BComparable sales of income properties in the market, extracting the relationship between NOI and sale price✓ Correct
CThe borrower's interest rate
DThe appraiser's judgment without market data
Explanation
The OAR is extracted from comparable income property sales by dividing each comparable's NOI by its sale price. The resulting cap rates are analyzed to develop a market-derived OAR for the subject property.
Related Utah Property Valuation Questions
- A 'drive-by' or 'exterior-only' appraisal of a Utah property is typically ordered when:
- Highest and best use of a Utah property is defined as the reasonably probable use that is:
- Assemblage refers to:
- The income approach to value is most commonly used for which type of Utah property?
- When a comparable sale used in a Utah appraisal was a foreclosure sale, the appraiser should:
- An appraisal contingency in a Utah purchase contract protects the buyer by:
- The most common appraisal approach used for single-family homes in the Wasatch Front area (Salt Lake City, Provo, Ogden) is:
- Gross Rent Multiplier (GRM) is used to:
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