Property Valuation
When appraising a historic property in Arkansas, the appraiser must consider:
AOnly the cost to demolish and rebuild
BThe impact of historic designation on use restrictions and any tax credit benefits✓ Correct
COnly the income approach
DThe opinion of the State Historic Preservation Office as final value
Explanation
Historic designation may restrict alterations, create eligibility for tax credits and grants, and affect marketability. Appraisers must consider both the restrictions and the benefits when valuing a historic property.
Related Arkansas Property Valuation Questions
- Net operating income (NOI) is calculated as:
- The gross income multiplier (GIM) differs from the GRM in that GIM uses:
- The principle of contribution in appraisal means:
- An income property has an NOI of $50,000 and the market cap rate is 7.5%. What is the estimated value?
- Direct capitalization in the income approach converts income into value by:
- The 'effective date' of an appraisal refers to:
- Which type of appraisal is typically required for a residential mortgage loan?
- In an appraisal, an adjustment for a comparable sale that is SUPERIOR to the subject property results in:
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