A 'before and after' appraisal method is most commonly used in:
Why Estimating compensation in a partial taking by eminent domain Is Correct
Answer B: Estimating compensation in a partial taking by eminent domain
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Math Concepts
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