Property Valuation
When a Maine appraiser uses the cost approach, the value of the land is estimated:
AAs zero (land is not separately valued)
BSeparately from improvements, using comparable land sales✓ Correct
CAs 20% of the total property value by default
DBased on the tax assessment only
Explanation
In the cost approach, land and improvements are valued separately. Land is estimated using comparable vacant land sales (land does not depreciate), while improvements are valued at replacement cost minus depreciation.
Related Maine Property Valuation Questions
- The 'principle of substitution' in Maine real estate appraisal states that:
- A Maine appraiser's report is considered confidential and may be shared with:
- A Maine appraiser is asked to determine the 'as improved' vs. the 'as if vacant' value. This distinction is important for:
- An appraiser in Maine is determining the assessed value of a property. The municipality uses an assessment ratio of 80%. If the market value is $350,000, what is the assessed value?
- In Maine, 'superadequacy' (a type of functional obsolescence) in appraisal refers to:
- The principle of 'regression' in real estate valuation states that:
- 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:
- The net operating income (NOI) of a property is calculated as:
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →