Property Valuation
Accrued depreciation in the cost approach is:
AThe annual decline in a property's tax assessment
BThe total loss in value from all causes (physical, functional, and external) between the date of construction and the appraisal date✓ Correct
CThe annual mortgage interest deduction on an investment property
DThe loss of value due only to physical wear and tear
Explanation
Accrued depreciation in the cost approach is the total loss in value from all sources — physical deterioration, functional obsolescence, and external obsolescence — from the time of construction to the appraisal date.
Related Nebraska Property Valuation Questions
- Nebraska county assessors use the 'income approach' to value large commercial properties for tax purposes because:
- Functional obsolescence in a property refers to:
- The sales comparison approach to property valuation is most appropriate for:
- The Uniform Standards of Professional Appraisal Practice (USPAP) applies to Nebraska appraisers because:
- An appraisal is defined as:
- Gross Rent Multiplier (GRM) is calculated as:
- When an appraiser makes adjustments in the sales comparison approach, adjustments are made to:
- Reconciliation in the appraisal process is the step where the appraiser:
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