1. Which of the following statements BEST describes the amount of adjustment an appraiser should make for vacancy allowance in a property?
Five percent of potential gross income.
The average vacancy rate of all properties in the area.
Somewhere between 5% and 10%.
The amount will vary with each property.
2. As the degree of risk and uncertainty associated with the income potential of property increases, which of the following will result?
A higher yield rate will mean a higher value.
A higher yield rate will mean a lower value.
A lower yield rate will mean a higher value.
A lower yield rate will mean a lower value.