Property Valuation
A Kentucky appraiser values land separately from improvements because:
ALand and improvements are always taxed separately
BLand does not depreciate, while improvements do✓ Correct
CUSPAP requires separate valuation in all cases
DKentucky law prohibits combined land and improvement values
Explanation
In the cost approach, land is valued separately because it does not depreciate (land is considered permanent), while improvements lose value over time through depreciation.
Related Kentucky Property Valuation Questions
- A Kentucky appraiser performing a drive-by (exterior-only) appraisal provides a report that:
- A Kentucky appraiser values a property at $285,000 using the sales comparison approach and $265,000 using the cost approach. When reconciling, the appraiser should:
- Regression is an appraisal principle that states:
- The principle of substitution holds that:
- A Kentucky appraiser is asked to value a Lexington tobacco farm. The most appropriate valuation approach would be:
- A Kentucky property owner disagrees with their county assessment. The first step is to:
- In Kentucky, a Broker Price Opinion (BPO) is typically prepared by:
- A Kentucky building has a replacement cost of $350,000 and has depreciated 20%. The depreciated value is:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →