Appraiser Leung is working on an appraisal for 44 Rabble Road.

Leung is trying to determine the price trend in the

neighbourhood in order to make the necessary time adjustments to comparable sold properties. He has come across
a property in the area that sold seven months ago for $269,500 and resold one month ago for $291,200.

Based on these two sales, what is the monthly percentage that Leung would use when calculating time adjustments
(rounded to 2 decimal places)?

Your Options Were:

A ) +1.34% (NEW #- OLD #) / OLD # X 100 / 6
B ) +1.15%
C ) -1.06%
D ) -1.24%

Investor Chung is interested in purchasing a 12,000 square foot industrial property at 230 Logan Avenue but it
must reflect a cap rate of at least 9.5%.

If the annual gross operating income is $305,000 and the annual expenses are $253,700, what is the maximum that
Chung would pay per square foot?

Your Options Were:

A ) $40.61
B ) $22.25
C ) $47.63
D ) $45.00

Correct Answer:
D ) $45.00

Appraiser Rosen is working on an appraisal of an apartment building at 62 Union Square utilizing the income
approach. There are 22 one bedroom units, 47 two bedroom units and 18 three bedroom units with potential gross
monthly rents of $755, $985 and $1,225 respectively. The three bedroom units pay an additional $35 monthly for a
parking space and all units pay an additional $15 for laundry facilities each month.

With a 5% allowance for vacancy and bad debt calculated on all income, what is the annual effective gross income
of the property based on the information provided?

Your Options Were:

A ) $970,422
B ) $990,546
C ) $1,042,680
D ) $970,325

Correct Answer:
B ) $990,546

Case Study ( Part 1 of 4 )

You have an appointment to list Mr. and Mrs. Newman's property tonight and are trying to determine a listing price
based on the direct comparison approach. On a previous visit, you compiled the following
information.

The Newman property is a four bedroom, two storey home with two 4 piece bathrooms. It has a double garage,
finished recreation room with a fireplace but no walkout to the garden. The building size is 176 square metres,
situated on a 60 x 125 foot lot.