Property Valuation
A 'before and after' appraisal method is most commonly used in which situation?
AEstimating the value of a home before and after renovations
BCalculating just compensation in eminent domain proceedings where a partial taking occurs✓ Correct
CComparing a property's value at listing vs. at closing
DDetermining value before and after a zoning change
Explanation
The 'before and after' method is the standard approach in partial eminent domain takings. The appraiser values the entire property before the taking, then values the remainder after the taking, and the difference (including severance damages and special benefits) determines just compensation owed to the property owner.
Related California Property Valuation Questions
- An appraiser is using the cost approach to value a 10-year-old building. The replacement cost new is $400,000 and the building has experienced 25% total depreciation. The land is valued at $120,000. What is the indicated value?
- An appraiser determines that the highest and best use of a parcel is for commercial development, not its current residential use. How does this affect the appraisal?
- A 2,000 sq ft home in a neighborhood has a value of $400 per square foot based on comparable sales. Using the sales comparison approach, what is the indicated value?
- The economic principle of 'plottage' refers to:
- When a property is over-improved relative to its neighborhood, the excess value added by the improvement is called:
- The concept of 'regression' in real estate appraisal means:
- The sales comparison approach to property valuation is MOST appropriate when appraising:
- A seller has a home with market value of $750,000. The seller wants to net $700,000 after paying a 6% commission. Can the seller achieve this by listing at $750,000?
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