DC Property Manager Exam – Questions with 100%
Correct Answers | Updated 2024
Management Plan - ans -This describes in detail the subject property's current use
along with its physical condition, fiscal projections, and any operational issues. It
also includes an analysis of the market (both regional and neighborhood), the
competing properties, as well as potential improvements or alternative uses for
the subject property.
Economic Obsolescence - ans -A status that represents a loss in value due to
outside forces (i.e. location, market conditions). An example would be an office
building, located in a small town, where the major employer closes. This may
result in both lower demand and rental rates.
Depreciation - ans -The process by which properties begin to deteriorate as soon
as they are completed. It represents the loss in value from the various forms of
obsolescence.
Depreciated Value - ans -The amount value that a property loses per year due to
the various forms of obsolescence. Ex: $12,000,000 x 2.5% (0.025) = $300,000 per
year
Investment Value - ans -An amount that 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.
Assessed Value - ans -This is the value used by government tax offices. Since it is
frequently determined using sophisticated mathematical models that are applied
to many similar types of properties over a geographic area, it can be less accurate
and produce results that are higher or lower than other types of "values".
Market Value - ans -This is the value that is agreed to between a buyer and seller.
It represents the "meeting of the minds".
Correct Answers | Updated 2024
Management Plan - ans -This describes in detail the subject property's current use
along with its physical condition, fiscal projections, and any operational issues. It
also includes an analysis of the market (both regional and neighborhood), the
competing properties, as well as potential improvements or alternative uses for
the subject property.
Economic Obsolescence - ans -A status that represents a loss in value due to
outside forces (i.e. location, market conditions). An example would be an office
building, located in a small town, where the major employer closes. This may
result in both lower demand and rental rates.
Depreciation - ans -The process by which properties begin to deteriorate as soon
as they are completed. It represents the loss in value from the various forms of
obsolescence.
Depreciated Value - ans -The amount value that a property loses per year due to
the various forms of obsolescence. Ex: $12,000,000 x 2.5% (0.025) = $300,000 per
year
Investment Value - ans -An amount that 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.
Assessed Value - ans -This is the value used by government tax offices. Since it is
frequently determined using sophisticated mathematical models that are applied
to many similar types of properties over a geographic area, it can be less accurate
and produce results that are higher or lower than other types of "values".
Market Value - ans -This is the value that is agreed to between a buyer and seller.
It represents the "meeting of the minds".
