Property Valuation
Depreciation in appraisal refers to:
AA tax deduction allowed for investment properties
BAny loss in property value from any cause✓ Correct
CThe increase in value of a property over time
DThe cost of replacing a building at current prices
Explanation
In appraisal, depreciation is any loss in value from any cause — physical deterioration, functional obsolescence, or external (economic) obsolescence. It is not the same as the tax depreciation deduction.
Related Arkansas Property Valuation Questions
- An appraiser reviewing an income property's 'rent roll' is examining:
- The principle of CONTRIBUTION states that:
- The cost approach to value is most reliable for:
- The principle of PROGRESSION states that:
- An appraisal is different from a competitive market analysis (CMA) primarily because:
- The gross rent multiplier (GRM) is calculated by:
- The principle of substitution states that a buyer will pay no more for a property than:
- Which appraisal principle holds that value is created by the expectation of future benefits?
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