Real Estate Calculations

Question 1

A percentage rate of return used by investors to calculate the present value of future income. Used for an income approach to appraisal. Also called Rate.

Answer 1

Cap Rate

Question 2

One-tenth of one cent used in some states to compute real estate taxes

Answer 2

Mill

Question 3

Income after expenses. Also called net operating income.

Answer 3

Net Income

Question 4

The measurement of a parcel of land by the number of feet of street or road frontage

Answer 4

Front Foot

Question 5

Simple depreciation method that takes the total cost of a building and divides that by the number of years the building is expected to be useful.

Answer 5

Straight Line Depreciation

Question 6

Amount of goods or services offered in the marketplace in exchange for something.

Answer 6

Value

Question 7

The fee for transfer of title to real property from one person to another by means of a written document, such as a deed.

Answer 7

Conveyance Fee

Question 8

The difference between the money made from an investment and the money actually invested.

Answer 8

Profit