Property Valuation
A Connecticut appraiser completing a cost approach finds the following: Land value $90,000; Reproduction cost $400,000; Physical depreciation 15%; Functional obsolescence 5%; External obsolescence 0%. What is the total depreciated value of improvements?
A$270,000
B$280,000
C$320,000✓ Correct
D$340,000
Explanation
Total depreciation = 15% + 5% + 0% = 20%. Depreciated improvement value = $400,000 × (1 − 0.
People Also Study
Related Connecticut Questions
- A building has a reproduction cost of $800,000 and 15% total depreciation. What is the depreciated value of the improvements?Property Valuation
- An appraiser preparing a Connecticut home valuation uses the cost approach and finds: Land value = $100,000; Reproduction cost of improvements = $350,000; Total depreciation = 20%. What is the total property value?Property Valuation
- A Connecticut property has land value of $120,000 and improvement value (after depreciation) of $310,000. Using the cost approach, what is the total value?Real Estate Math
- An appraiser in Connecticut reconciles value indications of $485,000 (sales comparison), $490,000 (cost), and $480,000 (income). The MOST weight is typically given to which approach for a single-family home?Property Valuation
- A Connecticut appraiser estimates the reproduction cost of a building at $850,000. The physical depreciation is estimated at 25%, functional obsolescence at 10%, and external obsolescence at 5%. The land value is $150,000. What is the indicated value by the cost approach?Property Valuation
- An owner purchased a Connecticut rental property for $400,000 and it depreciated in value to $320,000 over 5 years. What was the average annual depreciation?Real Estate Math
- A Connecticut property owner bought a building for $300,000 and made $45,000 in improvements. After 5 years, they sold it for $415,000. What was the total return on investment?Real Estate Math
Key Terms to Know
Depreciation
A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
Study This Topic
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →