Property Valuation
The 'land-to-value ratio' in real estate investment analysis is used to:
AA. Determine the property tax assessment
BB. Estimate what portion of the total property value is attributable to land (which doesn't depreciate) versus improvements✓ Correct
CC. Calculate how much of the purchase price can be financed
DD. Determine the land's highest and best use
Explanation
The land-to-value ratio is used for investment analysis and tax purposes. Land is not depreciable; improvements are.
Related Georgia Property Valuation Questions
- 'Value in use' differs from 'market value' in that value in use is:
- The 'cost approach' gives the most reliable indication of value when:
- The reproduction cost in the cost approach refers to:
- In the sales comparison approach, a 'time adjustment' is made when:
- A real estate appraiser who develops an 'as-is' market value on a property in poor condition will:
- In Georgia, property is assessed for tax purposes at what percentage of fair market value?
- Which of the following would be considered an arm's-length transaction for comparable sales purposes?
- The income approach to value is LEAST appropriate for which property type?
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