Property Valuation
In Alaska, functional obsolescence in a property could be caused by:
AA new highway built nearby creating noise
BAn outdated floor plan with bedrooms accessible only through another bedroom✓ Correct
CDeferred exterior painting
DA drop in neighborhood property values
Explanation
Functional obsolescence results from flaws within the property itself — such as outdated design, poor floor plan, or inadequate utilities — that reduce its desirability and value.
Related Alaska Property Valuation Questions
- An Alaska retail property has a base rent of $15/sq ft for 8,000 sq ft plus percentage rent of 5% of annual gross sales over $500,000. Tenant's gross sales are $750,000. What is the total annual rent?
- In Alaska's remote areas, an appraiser may have difficulty using the sales comparison approach because:
- The appraisal approach most commonly used to value single-family residential properties in Alaska is the:
- The income capitalization approach to value is MOST appropriate for:
- An Alaska property with an NOI of $60,000 and a capitalization rate of 7.5% has an estimated value of:
- What does the Gross Rent Multiplier (GRM) method of valuation use to estimate property value?
- Gross Rent Multiplier (GRM) is calculated as:
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