Property Valuation
The term 'depreciation' in appraisal means:
AA reduction in property taxes
BAny loss in value from any cause✓ Correct
CThe annual accounting deduction for income tax purposes
DThe lender's charge for early payoff
Explanation
In appraisal, depreciation refers to any loss in value from any cause — physical deterioration, functional obsolescence, or external/economic obsolescence. This is different from the IRS tax depreciation concept used for income-producing property.
Related Alabama Property Valuation Questions
- Which approach to value is most commonly used to appraise single-family residences?
- The principle of 'regression' in real estate value states that:
- An Alabama appraiser uses the income approach to value a rental property. The key formula is:
- An appraiser notes a comparable that is superior to the subject in one key feature. The appraiser should:
- A real estate appraiser in Alabama must hold a state license or certification issued by:
- A comparable sale that sold 18 months ago may require a time (market conditions) adjustment because:
- The principle of balance in real estate states that maximum value is achieved when:
- A capitalization rate decreasing over time in a market generally indicates:
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