Property Valuation
In West Virginia, which property would typically have the highest cap rate in the market?
AA Class A office building in Charleston with long-term tenants
BA Class C apartment building in a declining rural area with high vacancy✓ Correct
CA newly renovated retail center anchored by a national grocery chain
DA triple net leased dollar store with 15 years remaining
Explanation
Higher cap rates reflect higher risk and/or lower-quality properties. A Class C apartment building in a declining rural area with high vacancy has more risk and uncertainty than stabilized, well-located properties — the market demands a higher return (higher cap rate) for taking on that risk.
Related West Virginia Property Valuation Questions
- An appraiser in Charleston, WV is appraising a single-family home. Which approach to value is typically given the most weight for residential property?
- The cost approach to value includes which of the following components?
- A West Virginia appraiser who is pressured by a loan officer to hit a specific value that would qualify the borrower for a larger loan should:
- What is the principle of substitution as applied in real estate valuation?
- External obsolescence (economic or locational obsolescence) in a West Virginia appraisal is caused by:
- In the sales comparison approach, the subject property and comparable properties are analyzed based on:
- A West Virginia appraiser uses three comparable sales in the sales comparison approach: Comp 1 indicates $195,000, Comp 2 indicates $205,000, and Comp 3 indicates $200,000. The final value conclusion should be:
- Market value in a real estate appraisal is defined as the most probable price a property will sell for:
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →