Property Valuation
In a Florida appraisal, 'land residual technique' is used to:
ADetermine the value of the improvements only
BEstimate land value by capitalizing the income attributable to the land after assigning a return to the improvements✓ Correct
CCalculate the remaining useful life of the building
DEstimate land value using comparable land sales only
Explanation
The land residual technique estimates land value by: (1) allocating a return to the improvements (known cost), (2) attributing the remaining income to the land, and (3) capitalizing the land income at the land cap rate. It is used when land sales data is lacking.
Related Florida Property Valuation Questions
- In the cost approach, the formula is: Value = Land Value + Depreciated Cost of Improvements. If a property has a land value of $95,000, replacement cost new of $320,000, and total accrued depreciation of 25%, the indicated value is:
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- A Florida appraisal of a single-family home using the sales comparison approach results in three adjusted comparable values: $285,000, $292,000, and $280,000. The appraiser's final value opinion should be:
- If a Florida appraiser notes that a property is in a neighborhood experiencing 'increasing' market conditions, this affects the sales comparison approach by:
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- A Florida appraiser is appraising a 4-unit residential income property. Which appraisal approach is considered MOST applicable for this type of property?
- When Florida property values are declining steeply, an appraiser applying time adjustments to recent comparable sales would typically apply:
- A Florida appraiser assigns a 'time adjustment' to a comparable sale because the market has appreciated. This adjustment is:
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