Property Valuation
When appraising a new Nebraska subdivision, an appraiser establishing land values might use the:
AIncome approach for all lots
BSales comparison approach using recent sales of similar vacant lots in comparable subdivisions✓ Correct
CCost approach to estimate land value only
DAssessed value as the primary indicator
Explanation
Land is typically valued using the sales comparison approach — comparing recent sales of similar vacant parcels after adjusting for differences in location, size, utilities, and access.
Related Nebraska Property Valuation Questions
- The principle of substitution in appraisal theory states that:
- A Nebraska appraiser reconciles three approaches: Sales Comparison = $285,000; Cost = $290,000; Income = $278,000. For a single-family home, the appraiser will give MOST weight to:
- 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:
- 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:
- An appraiser working on a Nebraska subdivision notes that smaller homes near the subdivision entrance sell for more per square foot than larger homes at the back. This illustrates the principle of:
- A Nebraska industrial property's highest and best use has changed from manufacturing to commercial retail. The appraiser should value the property based on:
- The sales comparison approach to property valuation is most appropriate for:
- Which Nebraska appraisal approach is best for vacant land without income-producing improvements?
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