An appraiser is working on an appraisal of an office building that is 50% occupied. Which real estate interest would the appraiser be providing?
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An appraiser is working on an appraisal of an office building that is 50% occupied. Which real estate interest would the appraiser be providing?
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- Which of the following is recorded as a cost when purchasing an existing building? A. cost to renovate the building before it is in use B. fencing O C. land where the building is located O D. parking lot around the buildingDuring the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?Two buildings have just sold in the same office park as your property. All threeproperties were built by the same developer at the same time. Which valuation method will give you the best indication of the value of your building? a) DCF b) Comparable Property c) Capitalization Rate d) Replacement Cost Please ensure accuracy and explain your choice
- what would be an annual property operating statement of a potential real estate investment. A economic base analysis B managment fee C comparative market analysis D investor's earning potentialDuring the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes all costs of preparing the land for use. The demolition cost of the old building is added to the land costs, and the sale of the old building scrap is subtracted from the land cost. B. What should Alanna Co. record on its books for the building?In the summation (cost) method of valuation, which of the following steps is the ONLY one that a valuer would take in estimating value? a. Estimate the net operating income of the property. b. Determine the value of the land using the Assessed Annual Value and tax rate. c. Estimate the accrued depreciation. d. Calculate the acquisition price of the construction material used when the structure was built.
- Required: 1. At what amount should Edwards record the cost of the land and the new building, respectively? If an input box should be blank, enter a zero. Land Building Purchase price of land Demolition of old building Architect's fees Legal fees Construction costs Salvaged materials Total 2. Next Level If management misclassified a portion of the building's cost as part of the cost of the land, what would be the effect on the financial statements?Which of the following items should be accounted for as a capital expenditure?a. The monthly rental cost of an office buildingb. Costs incurred to repair leaks in a building’s roofc. Maintenance fees paid with funds provided by the company’s capitald. Taxes paid in conjunction with the purchase of office equipmentWhich of the following is considered capital expenditure Select one: a. Research expenses. b. Purchase of office consumables. c. Cost of material to construct new plant. d. Staff overtime.
- An asset manager's responsibilities would NOT include decisions pertaining to Group of answer choices the timing of capital expenditures. converting from rental units to condominium ownership. expanding the number of rental units within the complex. advertising alternatives to find new tenants.What is the major concern construction lenders express about the income approach to estimating value? Why do they prefer to use the cost approach when possible? In the latter case, if the developer has owned the land for five years prior to development, would the cost approach be more effective? Why or why not?You’re called out of an investment committee meeting at your real estate company for an important phone call. Stepping back into the meeting you find you’ve missed the initial description of the Subject Property, but a heated debate on which Comparable Properties should be used to evaluate the property is underway. Glancing at a handout your analysts have prepared, you see observe the following table: Comp A Comp B Comp C Comp D Comp E Distance from Subject 0.50 Miles 0.75 miles 1 mile 0.25 miles 0.90 miles Year of Construction 1990 2005 1985 2015 2006 Sq. Ft. 14,000 SF 24,000 SF 10,000 SF 25,000 SF 37,000 SF Months Since Sale 3 months 9 months 12 months 4 months 2 months The group turns to you to break the tie. Based only on the information provided above, select the most prudent answer for you to give: A. "They’re all close enough. Let’s just average the data from all of them.” B. “Without knowing…
