Property Valuation
When an appraiser determines the 'contributory value' of a feature (like a swimming pool), this represents:
AA. The cost to build the pool
BB. The amount the pool actually adds to the property's total market value✓ Correct
CC. The annual maintenance cost of the pool
DD. The pool's assessed value for tax purposes
Explanation
Contributory value is what a feature adds to total property value, not its cost. A pool costing $50,000 might only add $15,000 to market value. Contributory value is determined through paired sales analysis in the market.
Related Georgia Property Valuation Questions
- In a seller's market, cap rates for investment properties tend to:
- In the sales comparison approach, adjustments are made to the comparable properties because:
- The principle of substitution states that:
- The cost approach to value is most reliable for:
- An appraisal conducted for a federally related transaction must be performed by a:
- When appraising a property using the income approach, the capitalization rate is determined by:
- An appraisal that determines 'market value' estimates the price that:
- The 'income approach' to value is MOST appropriate for:
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