Property ValuationIntermediateCalifornia Exam

An appraiser uses the 'before and after' method when appraising property affected by:

AA general market decline
BA partial taking through eminent domainCorrect
CFunctional obsolescence from an outdated kitchen
DA change in neighborhood zoning

Why A partial taking through eminent domain Is Correct

Answer B: A partial taking through eminent domain

The 'before and after' method compares the property's value before a partial taking (eminent domain) with its value after the taking to determine the total compensation owed, including both the value of the taken portion and any severance damages to the remainder.

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

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