Property Valuation
A value-in-use estimate differs from market value in that value-in-use:
AIs always lower than market value
BMeasures the value to a specific user for a specific purpose rather than to the open market✓ Correct
CRequires a certified appraiser
DIs used only for commercial properties
Explanation
Value-in-use is the value of a property for a specific use by a specific owner/user, which may differ significantly from its market value (what a typical buyer would pay). It is relevant in corporate real estate decisions.
Related Nebraska Property Valuation Questions
- The principle of substitution in appraisal theory states that:
- Reproduction cost in the cost approach is the cost to:
- Depreciation in the cost approach to appraisal is divided into three categories. Which of the following is an example of 'physical deterioration'?
- A Nebraska appraiser inspects a property and notes that the neighborhood shows signs of transition from residential to commercial use. This is an example of which force affecting value?
- External obsolescence (economic obsolescence) in an appraisal is caused by:
- The income approach to value is most often used for:
- An appraiser notes that a home has only one bathroom while most comparable homes have two. This would likely be treated as:
- Functional obsolescence in a property appraisal refers to:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →