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LOS d: Contrast the limitations of the direct capitalization approach to those of the gross income multiplier technique.
Q1. All of the following are limitations to the gross income multiplier approach for real estate valuation EXCEPT:
A) gross rental income may be inappropriate when building-to-land ratios are different among otherwise comparable properties.
B) sales prices for comparable properties may not be current.
C) it may be difficult to obtain the necessary data to determine the appropriate capitalization rate.
Q2. 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 gross income multiplier approach.
B) The direct income capitalization approach.
C) The market extraction technique.
Q3. Which of the following valuation approaches is limited in its application to income producing properties?
A) Only the direct income capitalization approach.
B) Both the gross income multiplier approach and the direct income capitalization approach.
C) Neither the gross income multiplier approach nor the direct income capitalization approach. | 
发表于 2009-3-10 11:03
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