Property Valuation
A Colorado appraiser determines that a property has 'superadequacy' (overimprovement). This means:
AA. The property is in excellent condition
BB. The property has features that are excessive for the neighborhood and market, resulting in value loss because the excess cost cannot be recovered through higher sale prices✓ Correct
CC. The property has a surplus of land
DD. The property has more income potential than surrounding properties
Explanation
Superadequacy (a form of functional obsolescence) occurs when an improvement is excessive relative to the market demand for the area. For example, a $2 million custom home in a neighborhood where comparable homes sell for $500,000 may have significant superadequacy — the extra cost cannot be recovered in the sale price. The excess improvement represents wasted investment.
Related Colorado Property Valuation Questions
- Which appraisal approach would an appraiser most likely use to value a newly constructed home where there are no comparable sales in the immediate area?
- When a Colorado appraiser identifies a 'highest and best use' that is different from the current use, this indicates:
- In Colorado appraisal, the 'extraction method' for estimating land value involves:
- The principle of substitution in real estate appraisal states that:
- Functional obsolescence in real estate refers to:
- When comparing a comparable sale from 6 months ago in a rising Colorado market, the appraiser should make:
- In a Colorado market experiencing rapid price increases, an appraiser must consider:
- A Colorado appraiser applies a 20% cost-to-cure estimate to a deferred maintenance item. The repair cost is $5,000. What profit/entrepreneurial incentive has the appraiser built in?
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →