What is the term for total anticipated revenue from income property operations after accounting for losses?

Study for the Certified General Appraiser Exam. Explore flashcards and multiple-choice questions with hints and explanations to prepare effectively. Get ready for your certification!

The term for total anticipated revenue from income property operations after accounting for losses is Effective Gross Income. This concept represents the income a property is expected to generate, taking into consideration factors such as vacancy rates and collection losses. It provides a clearer picture of the actual revenue potential of the property compared to Potential Gross Income, which does not consider these losses.

Effective Gross Income serves as a critical component in real estate analysis, as it informs both the investor and appraisers about the income that can realistically be expected from the property after deducting any anticipated shortfalls. This is vital for making informed decisions about property valuation and investment opportunities.

In contrast, other options refer to different measures: Net Operating Income typically reflects revenue after operating expenses are deducted but does not factor in income losses. Before-Tax Cash Flow accounts for all income and expenses without considering tax implications, while Potential Gross Income represents total income before losses occur, making it an overly optimistic measure without adjustments for real-world collection issues.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy