Property Valuation
The cost approach is typically most reliable for appraising which Mississippi property type?
AAn apartment complex in Jackson
BA newly constructed single-family home✓ Correct
CA 30-year-old retail strip center
DA vacant residential lot
Explanation
The cost approach is most reliable for new or nearly new properties where depreciation is minimal and the cost to construct closely approximates market value. For older or income-producing properties, other approaches are given more weight.
People Also Study
Related Mississippi Questions
- Which appraisal approach is most commonly used to value single-family residential properties in Mississippi's Jackson metro market?Property Valuation
- A Mississippi property appraiser is reconciling three approaches to value. They give the most weight to the sales comparison approach because the property is a:Property Valuation
- A Mississippi appraiser determines the cost to construct a new building is $180 per square foot. The building has 2,000 square feet. Depreciation is estimated at 20%. The depreciated improvement value is:Property Valuation
- When appraising a Mississippi delta agricultural property, the appraiser would most likely give the greatest weight to which approach to value?Property Valuation
- A Mississippi property's assessed value is $95,000. If the assessment ratio is 10%, what is the estimated market value?Real Estate Math
- A Mississippi home is assessed at 10% of market value. The tax rate is 80 mills. If the market value is $200,000, the annual tax is:Real Estate Math
- A Mississippi property's market value is $250,000. It is assessed at 15% of market value. The tax rate is 80 mills. The annual tax is:Real Estate Math
- A Mississippi commercial property has an NOI of $75,000. Using a 7.5% cap rate, the value is $1,000,000. If market cap rates compress to 6.5%, the new indicated value is approximately: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.
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.
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
Study This Topic
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →