Property Valuation
The before-and-after method in Iowa eminent domain appraisals is used to:
ACompare the property's value before and after a market downturn
BDetermine just compensation by comparing the property's value before a partial taking to its value after the taking✓ Correct
CMeasure the effect of a zoning change on property value
DCalculate depreciation for income tax purposes
Explanation
In partial takings through eminent domain, Iowa appraisers use the before-and-after method: the difference between the property's market value before the taking and its market value after (reflecting the remainder's value) determines just compensation.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Math Concepts
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