CGA EXACT QUESTIONS AND ANSWERS WITH VERIFIED SOLUTIONS | UPDATED 2025

CGA EXACT QUESTIONS AND ANSWERS WITH VERIFIED SOLUTIONS | UPDATED 2025 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? 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? $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? 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? 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? 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? 14.17%