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?
A$722,500
B$595,000✓ Correct
C$745,000
D$850,000
Explanation
Total depreciation = 25% + 10% + 5% = 40%. Depreciated building value = $850,000 × (1 - 0.
Related Connecticut Property Valuation Questions
- Capitalization rate (cap rate) is calculated by:
- A Connecticut property's listing price is $550,000 and it sells for $565,000. The sale-price-to-list-price ratio is:
- In the income approach to value, a property's value is derived by:
- A Connecticut appraiser values a 10-unit apartment building at $1,200,000. The NOI is $84,000. The cap rate used is:
- Which appraisal principle states that value is influenced by the supply of and demand for similar properties?
- Functional obsolescence caused by a feature that modern buyers consider undesirable (e.g., a one-car garage in a neighborhood where two-car garages are standard) is called:
- An appraiser using the cost approach to value a property would:
- Which of the following increases the cap rate of an income property, all else being equal?
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →