Property Valuation
A Maine appraiser determines that a property has an effective age of 20 years and a total economic life of 60 years. The straight-line depreciation percentage is:
A20%
B33%✓ Correct
C40%
D25%
Explanation
Straight-line depreciation = Effective age ÷ Total economic life = 20 ÷ 60 = 0.333 = 33.
People Also Study
Related Maine Questions
- A Maine appraiser uses three comparable sales to estimate value. The comparables show adjusted values of $285,000, $292,000, and $288,000. What is the simple average value indication?Property Valuation
- A Maine appraiser calculates depreciation on a 20-year-old building with an economic life of 50 years. Using straight-line depreciation, the depreciation percentage is:Property Valuation
- A Maine property's building is worth $250,000 with a 40-year economic life. Using straight-line depreciation, the annual depreciation for income tax purposes (residential rental is 27.5 years per IRS) is approximately:Real Estate Math
- A Maine appraiser uses the cost approach on a 15-year-old home. Physical depreciation based on straight-line over a 50-year economic life is:Property Valuation
- A Maine appraiser is valuing a lakefront home. The home is 30 years old with a physical life of 60 years. Using age-life depreciation, the physical depreciation percentage is:Property Valuation
- A Maine property owner paid $275,000 for a home and sold it 5 years later for $330,000. What was the total percentage gain?Real Estate Math
- A Maine home that sold for $180,000 ten years ago now sells for $270,000. The percentage increase in value is:Real Estate Math
- A Maine property was purchased for $185,000 five years ago and is now appraised at $240,500. The total appreciation is what percentage?Real Estate Math
Key Terms to Know
Depreciation
A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Math Concepts
Study This Topic
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →