Property Valuation
In Colorado appraisal, the 'extraction method' for estimating land value involves:
ARemoving the building and selling the land separately
BSubtracting the depreciated value of improvements from the total sale price to isolate land value✓ Correct
CExtracting comparable land sales from a database
DMining minerals from the land to determine economic value
Explanation
The extraction (abstraction) method estimates land value by taking the total sale price of an improved property and subtracting the depreciated cost of the improvements. The remainder is attributed to land value.
Related Colorado Property Valuation Questions
- A Colorado appraiser notes that a property is in a 'declining market.' This means adjustments to older comparable sales should:
- When performing a sales comparison approach, an appraiser adjusts for differences between the subject property and comparables. If a comparable has a feature the subject lacks, the appraiser should:
- Accrued depreciation in the cost approach includes all of the following EXCEPT:
- The reliability of the sales comparison approach in Colorado appraisal is most affected by:
- What does 'reconciliation' mean in the appraisal process?
- In Colorado, a 'before and after' valuation method is used in which appraisal context?
- A Colorado appraiser calculates the value using the cost approach as follows: land value $80,000; replacement cost new $350,000; accrued depreciation 20%. What is the indicated value?
- Colorado's 'Board of Assessment Appeals' (BAA) hears property valuation disputes when:
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →