Property Valuation
In Hawaii, the 'extraction method' for estimating land value involves:
AA. Extracting core samples from the land to assess soil quality
BB. Deducting the depreciated value of improvements from a comparable sale to arrive at a land value estimate✓ Correct
CC. Extracting the land value from the county tax records
DD. Using aerial photography to estimate lot size
Explanation
The extraction method derives land value by subtracting the estimated depreciated cost of improvements from a comparable sale price, leaving an indication of land value.
Related Hawaii Property Valuation Questions
- The appraisal principle that states 'value is created by the expectation of future benefits' is known as:
- Which type of depreciation in the cost approach refers to loss in value due to factors outside the property, such as a nearby industrial facility?
- In Hawaii, the term 'economic life' of an improvement refers to:
- In Hawaii, which type of depreciation is curable?
- In Hawaii, which factor most significantly affects the difference in value between leasehold and fee simple properties?
- What does 'progression' mean in Hawaii real estate appraisal?
- What does the term 'paired sales analysis' mean in Hawaii real estate appraisal?
- In the income approach, the Gross Rent Multiplier (GRM) is calculated by dividing:
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