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.