CCIM|VERIFIED QUESTIONS AND CORRECT DETAILED ANSWERS|RATED AND
GRADED A+ NEW UPDATE| 2026/2027
Sales Price - Cost of Sale - Mortgage Balance = - ANSWER✔ Sales Proceeds Before Tax
Market Analysis is important to the investor because - ANSWER✔ It provides the data necessary to
perform a strategic analysis
The process of determining whether the market will support a particular use at a particular site so it is
profitable is called - ANSWER✔ strategic analysis
The four components of the strategic analysis model are as follows - ANSWER✔ Market &
Competitive Analysis
Location & Site Analysis
Political & Legal Analysis
Financial Analysis
Profit = - ANSWER✔ NOI / R (cap rate)
- Total Development Costs
Year One Estimate of NOI : $120,000
Market Cap Rate : 9%
Estimated Cost of Sale : 4%
Total Project Cost : $1,100,000
What is the potential profit for the developer if the property is sold when completed? - ANSWER✔
NOI = $120,000 / .09 = $1,333,333.33
$1,333,333.33
- Cost of Sale (4%, $53,333.00)
GRADED A+ NEW UPDATE| 2026/2027
Sales Price - Cost of Sale - Mortgage Balance = - ANSWER✔ Sales Proceeds Before Tax
Market Analysis is important to the investor because - ANSWER✔ It provides the data necessary to
perform a strategic analysis
The process of determining whether the market will support a particular use at a particular site so it is
profitable is called - ANSWER✔ strategic analysis
The four components of the strategic analysis model are as follows - ANSWER✔ Market &
Competitive Analysis
Location & Site Analysis
Political & Legal Analysis
Financial Analysis
Profit = - ANSWER✔ NOI / R (cap rate)
- Total Development Costs
Year One Estimate of NOI : $120,000
Market Cap Rate : 9%
Estimated Cost of Sale : 4%
Total Project Cost : $1,100,000
What is the potential profit for the developer if the property is sold when completed? - ANSWER✔
NOI = $120,000 / .09 = $1,333,333.33
$1,333,333.33
- Cost of Sale (4%, $53,333.00)
