People Window Help 30% X\' a real estate 2 Flashcards| Quiz ×1G-market aratysisi

Question

People Window Help 30% X' a real estate 2 Flashcards| Quiz ×1G-market aratysisis AOPINIONX Correct pus wvu . Yahoo Searct cure https:/ ework 2-Chapters 5 to 8 Help Save & Exit Submit MC Qu. 31 A comparable property sold four months... 34 A comparable property sold four months ago for $287000. If the appropriate adjustment for market cond tions is -050% per month (without compounding), what would be the adjusted price of the comparable property assuming all else is the same between the two properties? Multiple Choice" $285,565.00 $28126000 $269780.00

Explanation / Answer

Question 1

Question mentions no compounding takes place here.

So adjusted property value = Value n period ago * [1+ (Adjustment factor * n)]

Adjusted property value = 287000 * [1+(-0.50% * 4)] = 287000 * [1+(-2%)] = 287,000 * 98% = $281,260 --> Answer

Question 2

By direct capitalization method,

Capitalization Rate = Net Operating Income/Property Value

Property value is hence = NOI/Cap rate = 135,500/7.5% =  1,806,666.67 --> Answer

Question 3

Capture rate is the portion of total sales in the real estate market that are sold by one entity or one project.

Now the target segment size here was 176

Number of flats sold was 44

Therefore capture rate = 44/176 = 25% --> Answer

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