Property Valuation
An appraiser who determines that a property's 'highest and best use' is a multi-family development (rather than the existing single-family home) will typically value the land:
AA. At its single-family residential value
BB. At its value for multi-family development, even if the existing structure is demolished✓ Correct
CC. As an average of both uses
DD. At the assessed tax value
Explanation
If highest and best use is multi-family (more valuable than the current use), the appraiser values the land based on that use. The existing structure may actually contribute negative value if demolition costs exceed its contributory value.
Related Georgia Property Valuation Questions
- A plottage increment in real estate valuation refers to:
- When multiple appraisal approaches give different value indications, the final value conclusion involves:
- An appraiser uses the 'Marshall Valuation Service' (or similar cost data service) to estimate:
- A discounted cash flow (DCF) analysis differs from direct capitalization in that DCF:
- Potential gross income (PGI) in an income analysis assumes:
- A 'recapture rate' in the income approach accounts for:
- A property with a 'stigma' (such as a murder having occurred there) may experience what type of depreciation?
- A broker's price opinion (BPO) is most commonly used by:
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