Property Valuation
Nebraska county assessors use the 'income approach' to value large commercial properties for tax purposes because:
AIt is required by the Nebraska Real Estate License Act
BIncome-producing properties' values are inherently tied to the income they generate✓ Correct
CThe cost approach is not permitted in Nebraska
DSales comparison data is never available for commercial properties
Explanation
Large commercial and income-producing properties are often valued using income capitalization for assessment purposes, as the primary motivation for investment is income generation rather than personal use.
Related Nebraska Property Valuation Questions
- A Nebraska commercial property has a NOI of $85,000 and similar properties sell at a 7.5% cap rate. The indicated value is:
- A Nebraska appraiser identifies an external obsolescence affecting a residential property near a newly constructed highway. External obsolescence is:
- The 'principle of progression' in real estate valuation states that a lower-value property is:
- The term 'Desk Review' in Nebraska appraisal practice refers to:
- In Nebraska, the assessment ratio for property tax purposes is the relationship between:
- The income approach to valuation capitalizes a property's net operating income using the formula:
- In the sales comparison approach, 'adjustments' are made to comparable sales to account for:
- A Nebraska appraiser uses the economic age-life method to estimate depreciation. The building cost new was $400,000. Effective age is 15 years; economic life is 60 years. Depreciation is:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →