Property Valuation
A Nebraska appraiser is asked to determine a property's 'insurable value' for insurance purposes. This is closest to which appraisal concept?
AMarket value
BInvestment value
CReplacement cost (less land value)✓ Correct
DLiquidation value
Explanation
Insurable value is based on the cost to replace or rebuild the improvements (excluding land, which cannot burn). It is closely related to replacement cost new, less the land component which insurance doesn't cover.
Related Nebraska Property Valuation Questions
- A Nebraska appraiser uses the cost approach. The replacement cost of a building is $450,000. Total depreciation is $90,000. Land value is $75,000. The indicated value is:
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- A property with a GRM of 120 generates $1,500 per month in rent. What is the estimated value?
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