CGA Exact Questions With Complete Solutions
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? –
answer 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? - answer $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? - answer 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? - answer 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? - answer 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? - answer 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? - answer 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 - answer $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? - answer 5.85%
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? –
answer 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? - answer $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? - answer 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? - answer 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? - answer 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? - answer 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? - answer 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 - answer $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? - answer 5.85%
