The subject property is selling for $455,000, and the seller is paying $15,000 in financing concessions.  Which of the following statements is correct?

By estimating replacement cost in lieu of reproduction cost, an appraiser

Reproduction cost

Appraisers who use residential real estate appraisal forms

The subject property is expected to generate net operating income (NOI) over the next five years as shown in the following table.  The resale of the property is estimated at $5 million at the end of the fifth year.  The closing costs are estimated at 5% of the sale price.  The discount rate is 9.5%.  Cash flows are at the end of each year.  What is the value of this investment?  Round your answer to the nearest $1,000.   Year Net Income 1 $250,000 2 $300,000 3 $350,000 4 $400,000 5 $450,000 Resale $4,750,000 Discount Rate 9.50%  

Potential gross income (PGI) is

In a soft market, a landlord accepted a new tenant with a 60-month lease at $5,000 per month but have the new tenant six months of free rent.  Using the average rent method, what is the effective monthly rent?

The subject property has a level income of $30,000.  In the mortgage market for this type of property, the best rate available is 9.0% per year with monthly payments, 25- year amortization, and a maximum 75% loan-to=value.  The equity capitalization rate is 15%.  What is the market value?  (Use the band-of-investment technique and round your answer to the nearest $1,000.  You will need a financial calculator to answer this question.)

Which of the following should always be part of the reconciliation process?

If the loan-to-value ratio is 75%, the mortgage capitalization rate (RM) is 10.55%, and the debt coverage ratio (DCR) is 1.25, what is the implied capitalization rate based on the debt coverage formula (underwriter’s method)?