CGA Exact Questions and answers
The |"as |vacant" |highest |and |best |use |is |for |retail |and |the |as |improved |highest |and
|best |use |is |for |single |tenant-office |.... |What |principle |underlies |the |valuation
|process? |- |correct |answers✔✔Consistent |Use
A |property's |site |is |leased |for |$40,000 |per |year, |which |is |considered |the |market
|rate. |The |site |represents |35% |of |the |total |value. |The |overall |cap |rate |is |10% |and
|the |building |cap |rate |is |11%. |What |is |the |site |value? |- |correct |answers✔✔$491,228
A |property |was |purchased |for |$325, |000 |and |the |buyer |expected |to |hold |the
|property |for |five |years. |The |pro |forma |projections |call |for |a |net |oper. |incoome |of
|$30,000 |for |Yrs |1 |& |2, |$35,000 |for |Yrs |3& |4 |and |$37,000 |for |Yr. |5. |The |property |is
|expected |to |increase |in |value |to |$375k |at |the |end |of |the |holding |period. |What |is
|the |overall |capitalization |rate |from |the |investment? |- |correct |answers✔✔12.5%
In |preparing |a |market |value |appraisal |with |retrospective |date |of |value, |is |the
|appraiser |allowed |to |consider |any |info |after |the |eff. |date |of |value, |and |why? |-
|correct |answers✔✔Yes, |the |appraiser |may |use |data |subsequent |to |the |eff. |date |as |a
|confirmation |of |trends.
Which |of |the |following |demand-side |economic |factors |creates |value? |- |correct
|answers✔✔Desire |and |effective |purchasing |power
*"Always |Appears" |- |If |the |overall |cap |rate |for |the |fee |simple |interest |is |10% |and |the
|leased |fee |cap |rate |is |8.5%, |market |net |operating |income |is |$20,000 |and |contract
|net |operating |income |is |$12,500. |What |is |the |implied |leasehold |cap |rate? |- |correct
|answers✔✔14.17%
A |staff |appraiser, |employed |by |a |local |bank |for |5 |years, |plans |to |leave |the |bank |to
|open |an |independent |appraisal |business. |Must |the |appraiser |remove |all |work |files
|for |assignments |completed |for |the |bank? |- |correct |answers✔✔No; |the |appraiser |may
|make |arrangements |with |the |bank |to |access |or |retrieve |the |files.
, The |subject |property |is |a |5,000 |sf |single |tenant |office |building |that |is |currently
|leased |for |$9.00 |per |sf |with |three |years |remaining |on |the |lease... |vacancy |credit
|loss |10% |... |owner |expenses |25% |of |of |eff. |gross |income |... |market |rent |$12 |per |sf
|per |year. |Market |overall |rates |9.5%. |a |sale |of |a |leasehold |interest |sold |for |$29,000
|with |a |net |leasehold |inocme |of |$12000 |per |year |with |3 |yrs |remaining. |What |is |the
|value |of |the |leasehold |estate, |rounded |to |the |nearest |$1000 |- |correct
|answers✔✔$36,000
A |property |sold |for |$330, |000 |with |10% |down, |financed |at |7.5% |interest |for |20
|years |with |monthly |payments. |The |property |has |a |gross |annual |income |of |$42k. |/
|Vacancy |/ |collection |loss |totals |8% |and |expenses |are |$8k |per |year. |What |is |the
|equity |dividend |rate |indicated |by |this |sale? |- |correct |answers✔✔5.85%
The |market |value |of |a |property |is |$2,300,000 |at |stabilized |occupancy. |The |direct
|building |cost |is |$1,500,000. |The |indirect |costs |are |$200,000 |and |the |land |costs |are
|$125,000. |What |is |the |indicated |entrepreneurial |profit? |- |correct
|answers✔✔$475,000
What |term |refers |to |a |division |of |a |total |market |based |on |the |preferences |of |buyers
|and |sellers? |- |correct |answers✔✔Submarket
The |subject |property |has |200 |acres |on |improved |pasture, |300 |acres |of |native
|pasture, |and |500 |acres |of |woodland. |Comp |A |has |300 |acres |of |improved |pasture,
|300 |acres |of |native |pasture, |and |400 |acres |of |woodland. |Comp |A |sold |for |$1050
|per |acre. |Assuming |native |pasture |sells |for |80% |of |improved |pasture |prices |and
|woodland |sells |for |40% |of |improved |pasture |prices, |what |is |the |per |acre |value |of
|the |subject |property? |- |correct |answers✔✔$960 |per |acre
An |apartment |complex |was |purchased |5 |yrs |ago |for |$850k, |the |owner |received |the
|following |net |cash |flows:
1: |50k
2: |52k
3: |48k |("sometimes |the |number |is |another |50k")
4: |53k
5: |54k
The |"as |vacant" |highest |and |best |use |is |for |retail |and |the |as |improved |highest |and
|best |use |is |for |single |tenant-office |.... |What |principle |underlies |the |valuation
|process? |- |correct |answers✔✔Consistent |Use
A |property's |site |is |leased |for |$40,000 |per |year, |which |is |considered |the |market
|rate. |The |site |represents |35% |of |the |total |value. |The |overall |cap |rate |is |10% |and
|the |building |cap |rate |is |11%. |What |is |the |site |value? |- |correct |answers✔✔$491,228
A |property |was |purchased |for |$325, |000 |and |the |buyer |expected |to |hold |the
|property |for |five |years. |The |pro |forma |projections |call |for |a |net |oper. |incoome |of
|$30,000 |for |Yrs |1 |& |2, |$35,000 |for |Yrs |3& |4 |and |$37,000 |for |Yr. |5. |The |property |is
|expected |to |increase |in |value |to |$375k |at |the |end |of |the |holding |period. |What |is
|the |overall |capitalization |rate |from |the |investment? |- |correct |answers✔✔12.5%
In |preparing |a |market |value |appraisal |with |retrospective |date |of |value, |is |the
|appraiser |allowed |to |consider |any |info |after |the |eff. |date |of |value, |and |why? |-
|correct |answers✔✔Yes, |the |appraiser |may |use |data |subsequent |to |the |eff. |date |as |a
|confirmation |of |trends.
Which |of |the |following |demand-side |economic |factors |creates |value? |- |correct
|answers✔✔Desire |and |effective |purchasing |power
*"Always |Appears" |- |If |the |overall |cap |rate |for |the |fee |simple |interest |is |10% |and |the
|leased |fee |cap |rate |is |8.5%, |market |net |operating |income |is |$20,000 |and |contract
|net |operating |income |is |$12,500. |What |is |the |implied |leasehold |cap |rate? |- |correct
|answers✔✔14.17%
A |staff |appraiser, |employed |by |a |local |bank |for |5 |years, |plans |to |leave |the |bank |to
|open |an |independent |appraisal |business. |Must |the |appraiser |remove |all |work |files
|for |assignments |completed |for |the |bank? |- |correct |answers✔✔No; |the |appraiser |may
|make |arrangements |with |the |bank |to |access |or |retrieve |the |files.
, The |subject |property |is |a |5,000 |sf |single |tenant |office |building |that |is |currently
|leased |for |$9.00 |per |sf |with |three |years |remaining |on |the |lease... |vacancy |credit
|loss |10% |... |owner |expenses |25% |of |of |eff. |gross |income |... |market |rent |$12 |per |sf
|per |year. |Market |overall |rates |9.5%. |a |sale |of |a |leasehold |interest |sold |for |$29,000
|with |a |net |leasehold |inocme |of |$12000 |per |year |with |3 |yrs |remaining. |What |is |the
|value |of |the |leasehold |estate, |rounded |to |the |nearest |$1000 |- |correct
|answers✔✔$36,000
A |property |sold |for |$330, |000 |with |10% |down, |financed |at |7.5% |interest |for |20
|years |with |monthly |payments. |The |property |has |a |gross |annual |income |of |$42k. |/
|Vacancy |/ |collection |loss |totals |8% |and |expenses |are |$8k |per |year. |What |is |the
|equity |dividend |rate |indicated |by |this |sale? |- |correct |answers✔✔5.85%
The |market |value |of |a |property |is |$2,300,000 |at |stabilized |occupancy. |The |direct
|building |cost |is |$1,500,000. |The |indirect |costs |are |$200,000 |and |the |land |costs |are
|$125,000. |What |is |the |indicated |entrepreneurial |profit? |- |correct
|answers✔✔$475,000
What |term |refers |to |a |division |of |a |total |market |based |on |the |preferences |of |buyers
|and |sellers? |- |correct |answers✔✔Submarket
The |subject |property |has |200 |acres |on |improved |pasture, |300 |acres |of |native
|pasture, |and |500 |acres |of |woodland. |Comp |A |has |300 |acres |of |improved |pasture,
|300 |acres |of |native |pasture, |and |400 |acres |of |woodland. |Comp |A |sold |for |$1050
|per |acre. |Assuming |native |pasture |sells |for |80% |of |improved |pasture |prices |and
|woodland |sells |for |40% |of |improved |pasture |prices, |what |is |the |per |acre |value |of
|the |subject |property? |- |correct |answers✔✔$960 |per |acre
An |apartment |complex |was |purchased |5 |yrs |ago |for |$850k, |the |owner |received |the
|following |net |cash |flows:
1: |50k
2: |52k
3: |48k |("sometimes |the |number |is |another |50k")
4: |53k
5: |54k
