Property Valuation
A Wyoming appraiser using the direct capitalization method would estimate value by:
AAdding the land value to the depreciated cost of improvements
BDividing the property's net operating income by the capitalization rate✓ Correct
CAveraging the three most recent comparable sales
DMultiplying the gross rent by the market-derived GRM
Explanation
Direct capitalization: Value = NOI / Cap Rate. This is the simplest income approach method. The cap rate is derived from market sales of comparable income properties. It converts a single year's income into an indication of value.
Related Wyoming Property Valuation Questions
- In Wyoming, 'assemblage value' or 'plottage increment' refers to the:
- A Wyoming appraiser is asked to provide a 'retrospective appraisal' for a property. This means the appraisal:
- In Wyoming, the cost approach to value is most useful for:
- For Wyoming property tax assessment purposes, the county assessor determines:
- In Wyoming, the principle of change recognizes that:
- In Wyoming, land value is typically determined using the:
- In the income approach, Net Operating Income (NOI) is calculated as:
- Depreciation in the cost approach to value includes all of the following EXCEPT:
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