Property Valuation
The capitalization rate (cap rate) formula used to value income property in West Virginia is:
ACap rate = NOI × Value
BCap rate = NOI ÷ Value✓ Correct
CCap rate = Value ÷ NOI
DCap rate = GRM × NOI
Explanation
Cap Rate = Net Operating Income (NOI) ÷ Property Value. Rearranged: Value = NOI ÷ Cap Rate.
Related West Virginia Property Valuation Questions
- A West Virginia appraiser asked to determine the value of a partial interest in a property (such as a 50% tenancy in common interest) would typically find:
- An appraiser in Morgantown, WV notes that home prices near West Virginia University have been rising rapidly due to strong rental demand from students. This is an example of which value principle?
- In West Virginia, under which condition would an appraiser NOT use the income approach to value?
- In the income approach for a West Virginia apartment building, 'potential gross income' minus 'vacancy and credit losses' equals:
- The principle of conformity holds that property value is maximized when:
- A West Virginia appraiser must comply with which professional standards when performing an appraisal for a federally related transaction?
- The reproduction cost in the cost approach is defined as the cost to:
- A West Virginia appraiser's effective age differs from actual age because effective age reflects:
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 →