PP-Answer-Lecture4-REValuation-II - Lecture 4 Real Estate Valuation Part II Sales Comparison Approach and Cost Approach Concept Checks 1 List three ways

PP-Answer-Lecture4-REValuation-II - Lecture 4 Real Estate...

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Lecture 4 – Real Estate Valuation Part II, Sales Comparison Approach and Cost Approach Concept Checks 1.List three ways in which DCF approach differ from direct capitalization approach? 2.Distinguish market rent and contract rent. 3.Distinguish operating expenses and capital expenditure. 4.Assume the estimated first-year NOI of the subject property is $400,000. Also assume that data fromthe sale of comparable property indicates the appropriate cap rate is 9%. What is the indicated valueof the subject property? 5.If new information suggests that rents in a market are going to increase at a faster rate than what hasbeen projected, what will happen to the cap rates that appraisers abstract from this market after thisnew information becomes known to market participants?
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  • Fall '15
  • Valuation, Generally Accepted Accounting Principles, cap rate, market rent

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