Question: SELECT ALL THAT ARE FALSE A -Two comps. One comp is 3 times as important as the other comp in determining subject property's value. And

SELECT ALL THAT ARE FALSE

A -Two comps. One comp is 3 times as important as the other comp in determining subject property's value. And so, when calculating their average cap rate, their respective weights should be 0.67 and 0.33.

B - Two comps. Operating & other expenses as percentage of gross income are 75% for both comps. This means that between the GIM technique and the cap rate technique, you get an accurate subject property value if you use the GIM technique.

C - In the times of a real estate cycle when building prices are declining, the cap rates are rising.

D - Loan amount is nothing but the sum of all future debt services & the loan balance.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!