Property Valuation
In the cost approach, 'accrued depreciation' is the total loss in value from:
AOnly physical deterioration
BPhysical deterioration, functional obsolescence, and external obsolescence✓ Correct
COnly economic obsolescence
DOnly deferred maintenance
Explanation
Accrued depreciation in the cost approach is the total loss in value from: (1) physical deterioration (wear and tear), (2) functional obsolescence (outdated features), and (3) external/economic obsolescence (outside factors).
Related Colorado Property Valuation Questions
- When a Colorado appraiser identifies a 'highest and best use' that is different from the current use, this indicates:
- 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?
- A Colorado property owner who disagrees with their county-assessed value should first appeal to:
- In Colorado, a 'before and after' valuation method is used in which appraisal context?
- An appraiser uses the cost approach to value a Colorado commercial property. The replacement cost new is $800,000 and the property has 25% depreciation. The land is worth $150,000. What is the indicated value?
- When a Colorado appraiser is asked to provide a 'retrospective appraisal' (value as of a past date), they must:
- A Colorado appraiser is asked to do a 'drive-by' (limited scope) appraisal rather than a full interior appraisal. This is an example of:
- The sales comparison approach to value is most commonly used for:
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →