Property Valuation
A Florida appraiser determines that a neighborhood's land values have been declining because of high vacancy rates. This condition is known as:
AProgression
BRegression
CPlottage
DExternal obsolescence✓ Correct
Explanation
High vacancy rates caused by economic decline reduce neighboring property values. This loss in value from external (outside the property) economic factors is external (economic) obsolescence.
People Also Study
Related Florida Questions
- A Florida appraiser uses three valuation approaches and determines values of $310,000, $318,000, and $305,000. The final appraised value is $312,000. This final determination reflects:Property Valuation
- When Florida property values in a specific neighborhood are declining, an appraiser applying the principle of 'regression' would expect that:Property Valuation
- A Florida appraiser is determining the cost approach value for a 10-year-old building with a total economic life of 50 years. The accrued depreciation percentage is:Property Valuation
- An appraiser determines that a Florida property has an economic life of 40 years, was built 8 years ago, and has no deferred maintenance. Using straight-line depreciation, what percentage of the cost represents accrued depreciation?Property Valuation
- A Florida appraiser uses the cost approach on a home. Land value = $80,000; construction cost new = $240,000; accrued depreciation = $36,000. What is the estimated value?Real Estate Math
- A Florida apartment complex has 24 units renting at $1,350/month. Annual vacancy loss is 5%. Annual operating expenses are $72,000. If the cap rate is 8%, what is the value?Real Estate Math
- A Florida county enacts a regulation that prohibits a property owner from developing their property at all, effectively taking all economic value. The property owner may have a claim for:Land Use & Zoning
- A Florida building has a replacement cost of $800,000. Physical depreciation is $120,000, functional obsolescence is $40,000, and external obsolescence is $20,000. Total accrued depreciation is: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.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Math Concepts
Study This Topic
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →