Annual Operating Expenses

Question 1

A. When a property is appraised, all three approaches will be used, but which approach will be given the most weight in bracketing or correlating the final value:

1. If the appraised property is an apartment building?

2. If the appraised property is a condominium?

3. If the appraised property is a brand new factory?

B. Find the value by use of the income approach (show your calculations):

1. three-unit apartment rents for $900 per month per unit

2. vacancy factor of 5%

3. annual operating expenses – taxes $1,800, insurance $1,200, and all other expenses $4,100

4. capitalization rate of 8%

Question 2

1. List the duties of the Real Estate Commissioner. What is not within the scope of the commissioner’s duties?

2. Did this course meet your needs? What would you like to see added to the course?