Chapter 3 Flashcards
1
Q
Expresses the relationship between net operating income and market value
A
Overall capitalization rate
2
Q
Used in most appraisal situation not for ad valorem taxation does not have the ETR component and is referred to an unloaded capitalization rate
A
Overall capitalization rate
3
Q
Five methods for capitalization rate
A
Derivation for comparable sales band of investments net income ratio method debt coverage ratio method Band of investments land and imp
4
Q
The preferred method to obtain a capitalization rate in the income approach because it brings actual market rates to the analysis similar sale data
A
Derivation from comparable sales
5
Q
Mortgage capitalization is also known as
A
Annual mortgage
6
Q
The lenders return on the money borrowed all the mortgage capitalization rate is a ratio of the annual principal and interest payments to the amount borrowed
A
Mortgage yield rate
