Property Valuation
In Colorado, the 'allocation method' for estimating land value uses:
AA percentage of total property value typically attributable to land in that area✓ Correct
BThe income approach applied only to land
CA formula based on property tax records
DThe cost to reproduce the improvements
Explanation
The allocation method estimates land value by applying a typical land-to-value ratio for the area. For example, if land typically accounts for 20-25% of total property value in an area, and the total property value is $400,000, the land is estimated at $80,000-$100,000.
Related Colorado Property Valuation Questions
- An appraiser's 'effective age' of a structure may differ from its 'actual age' because:
- 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?
- Effective age in a Colorado appraisal differs from actual age because effective age reflects:
- A Colorado appraiser completing a retrospective appraisal is determining value:
- When an appraiser applies the 'matched pairs' analysis in Colorado, they are:
- 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:
- When comparing a comparable sale from 6 months ago in a rising Colorado market, the appraiser should make:
- An appraiser uses a cap rate of 6.5% and an NOI of $52,000 to value a Colorado office building. What is the indicated value?
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →