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Real Estate Salesperson License Exam

Valuation & Market Analysis Practice Questions

1 practice questions with detailed explanations — aligned to the Real Estate Salesperson License Exam.

  1. Q1.A property generates $60,000 in net operating income (NOI) annually. If an investor requires a 8% capitalization rate, what is the maximum price the investor should pay?

    A.$480,000
    B.$750,000
    C.$600,000
    D.$720,000
    B$750,000

    Explanation: Value = NOI / Cap Rate = $60,000 / 0.08 = $750,000. The capitalization rate approach is used to estimate the value of income-producing properties.

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