Property Valuation
In Maine, 'functional obsolescence' in a property is best described as:
ADeterioration caused by weather and age
BA loss in value due to features that are inadequate, outdated, or superadequate relative to current market standards✓ Correct
CDeclining values caused by external neighborhood factors
DDamage caused by flooding
Explanation
Functional obsolescence is a loss in value caused by deficiencies or superadequacies in the property itself compared to current market standards, such as an outdated floor plan or inadequate electrical service.
Related Maine Property Valuation Questions
- The sales comparison approach to value is MOST appropriate for appraising:
- In Maine real estate appraisal, 'market value' is best defined as:
- In real estate valuation, 'highest and best use' means:
- 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?
- A Maine appraiser values a single-family home using three approaches: sales comparison ($315,000), cost approach ($320,000), and income approach ($305,000). The appraiser's final reconciled value is typically:
- The income approach to value is MOST appropriate for valuing:
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- A Maine appraisal uses the income capitalization approach. A property generates $36,000 net operating income annually. Using a 6% cap rate, the indicated value is:
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