DC Property Managers Exam GUARANTEED PASS !!
What are the three types of Obsolescence? - (ANSWER )1. Physical Obsolescence.
2. Functional Obsolescence.
3. Economic Obsolescence.
Depreciation - (ANSWER )the loss in value from the various forms of obsolescence.
Market Analysis - (ANSWER )Identifying the properties strengths and weaknesses in an effort to
improve overall economic performance; also known an determining the properties highest and
best use.
Analysis of Alternatives - (ANSWER )Identifying theoretical costs associated with
corresponding increases in rent; analyzing the costs associated with improvements that could
increase the overall value of the property.
Example: Modernizing/updating the property's finishes for the purposes of gaining premium
rents.
What are the 5 Types of Property Values? - (ANSWER )1. Investment Value
2. Assessed Value
3. Market Value
4. Depreciated Value
5. List Price
Investment Value - (ANSWER )This is the value that is generally used by investors. It is
frequently determined either by calculating the Net Operating Income and applying a
Capitalization Rate to it or from Cash Flow by determining the Return on Investment.
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What are the three types of Obsolescence? - (ANSWER )1. Physical Obsolescence.
2. Functional Obsolescence.
3. Economic Obsolescence.
Depreciation - (ANSWER )the loss in value from the various forms of obsolescence.
Market Analysis - (ANSWER )Identifying the properties strengths and weaknesses in an effort to
improve overall economic performance; also known an determining the properties highest and
best use.
Analysis of Alternatives - (ANSWER )Identifying theoretical costs associated with
corresponding increases in rent; analyzing the costs associated with improvements that could
increase the overall value of the property.
Example: Modernizing/updating the property's finishes for the purposes of gaining premium
rents.
What are the 5 Types of Property Values? - (ANSWER )1. Investment Value
2. Assessed Value
3. Market Value
4. Depreciated Value
5. List Price
Investment Value - (ANSWER )This is the value that is generally used by investors. It is
frequently determined either by calculating the Net Operating Income and applying a
Capitalization Rate to it or from Cash Flow by determining the Return on Investment.
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