Property Valuation
A Colorado property with above-market fixtures (granite countertops in an entry-level neighborhood) suffers from:
APhysical deterioration
BFunctional obsolescence — over-improvement (super-adequacy)✓ Correct
CExternal obsolescence
DEconomic obsolescence
Explanation
Over-improvement (super-adequacy) is a form of functional obsolescence where features of the property exceed what the market will pay in that area or for that property type. The owner cannot recover the full cost of the high-end features from the market.
Related Colorado Property Valuation Questions
- In Colorado, a 'before and after' appraisal may be required when:
- A Colorado appraiser's 'reconciliation' note states that 'greatest weight was given to the sales comparison approach.' This is because:
- Accrued depreciation in the cost approach includes all of the following EXCEPT:
- A Colorado appraiser uses three comparable sales to value a home. Comp 1 requires a $5,000 upward adjustment for a bedroom. Comp 2 requires a $3,000 downward adjustment for a garage. Comp 3 requires no adjustments and sold for $385,000. Which comp is the most reliable indicator of value?
- A Colorado appraiser's adjustment grid shows the subject property is superior to most comparables. Most adjustments to the comparables will be:
- The principle of substitution in real estate appraisal states that:
- In Colorado, the 'economic life' of an improvement refers to:
- When a Colorado appraiser makes a 'downward adjustment' to a comparable, it means:
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