Property Valuation
Functional utility in property valuation refers to a property's:
APhysical structural integrity
BAbility to serve its intended purpose efficiently relative to current market standards✓ Correct
CIncome-producing capability
DLegally permitted uses under current zoning
Explanation
Functional utility measures how well a property performs its intended function compared to what buyers currently expect. A home with poor traffic flow, inadequate bathrooms, or outdated kitchen may have lower functional utility.
Related Nebraska Property Valuation Questions
- The sales comparison approach to property valuation is most appropriate for:
- An appraiser in Nebraska uses paired sales analysis to isolate the value of a two-car garage. This is a technique used in which approach?
- Nebraska's property tax appeal process allows property owners who believe their assessed value is too high to:
- A Nebraska appraiser determines the economic life of a commercial building is 40 years. The building is 10 years old. The effective age is also 10 years. The remaining economic life is:
- Nebraska farmland productivity ratings (PI ratings) are used by appraisers to:
- A Nebraska industrial property's highest and best use has changed from manufacturing to commercial retail. The appraiser should value the property based on:
- An appraisal report prepared for a federally related transaction must be performed by:
- The effective age of a building differs from its actual (chronological) age in that effective age:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →