1.Which of the following valuation approaches is limited in its application to income producing properties?

A)   Only the direct income capitalization approach.

B)   Only the gross income multiplier approach.

C)   Neither the gross income multiplier approach nor the direct income capitalization approach.

D)   Both the gross income multiplier approach and the direct income capitalization approach.

2.Discontinuous pricing, lack of rental data, and the fact that gross rents may distort appraised values are all limitations of which of the following valuation techniques?

A)   The direct income capitalization approach.

B)   The gross income multiplier approach.

C)   The market extraction technique.

D)   The band-of-investments technique.

3.All of the following are limitations to the gross income multiplier approach for real estate valuation EXCEPT:

A)   sales prices for comparable properties may not be current.

B)   it may be difficult to obtain the necessary data to determine the appropriate capitalization rate.

C)   gross rental income may be inappropriate when building-to-land ratios are different among otherwise comparable properties.

D)   it is not useful for unique properties or properties that provide benefits other than income.

答案和详解如下：

1.Which of the following valuation approaches is limited in its application to income producing properties?

A)   Only the direct income capitalization approach.

B)   Only the gross income multiplier approach.

C)   Neither the gross income multiplier approach nor the direct income capitalization approach.

D)   Both the gross income multiplier approach and the direct income capitalization approach.

The correct answer was D)

Both valuation approaches are limited to use with income producing properties. Neither approach can provide an accurate value estimate for owner-occupied properties because the benefit derived by the owner is difficult to measure in monetary terms.

2.Discontinuous pricing, lack of rental data, and the fact that gross rents may distort appraised values are all limitations of which of the following valuation techniques?

A)   The direct income capitalization approach.

B)   The gross income multiplier approach.

C)   The market extraction technique.

D)   The band-of-investments technique.

The correct answer was B)

The direct income capitalization approach does not use gross rents. The market extraction and the band-of-investments techniques are not valuation techniques per se. They are techniques used to determine capitalization rates for the direct income capitalization valuation approach.

3.All of the following are limitations to the gross income multiplier approach for real estate valuation EXCEPT:

A)   sales prices for comparable properties may not be current.

B)   it may be difficult to obtain the necessary data to determine the appropriate capitalization rate.

C)   gross rental income may be inappropriate when building-to-land ratios are different among otherwise comparable properties.

D)   it is not useful for unique properties or properties that provide benefits other than income.

The correct answer was B)

The gross income multiplier approach does not use a capitalization rate.