Property Valuation
The 'as improved' value of an Indiana property assumes:
AAll proposed improvements have been completed
BThe existing improvements are in place and contributing to value on the effective date✓ Correct
CThe property is in its best possible condition
DAll deferred maintenance has been remedied
Explanation
The 'as improved' value is the market value of the property with all existing improvements in their current condition as of the effective date — neither assuming improvements that don't exist nor subtracting deferred maintenance (which affects value but is reflected in market comparisons).
People Also Study
Related Indiana Questions
- An Indiana appraisal for an estate tax purpose (date of death value) uses which effective date?Property Valuation
- An Indiana licensee who completes a sale of their own property (as seller) for more than the market value to an unsophisticated buyer may be violating:Indiana License Law
- Deferred maintenance on an Indiana investment property:Property Management
- An Indiana office building has a 5-year lease at $20/sqft for 10,000 sqft. Market rent is currently $25/sqft. The value impact of the below-market lease is:Property Valuation
- An Indiana appraiser determines a property's 'as improved' value versus 'as if vacant' value. The difference represents the:Property Valuation
- When an Indiana commercial tenant has an above-market lease (paying more than market rent), the property value from the leased fee interest would typically be:Property Valuation
- An Indiana home's market value is $300,000, the land is worth $60,000, and the building has a 30-year remaining economic life. Using straight-line depreciation, what is the annual building depreciation for tax purposes (residential = 27.5 years)?Finance
- Indiana purchase contracts typically include which contingency to protect a buyer whose home purchase depends on selling their current home?Contracts
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Study This Topic
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →