Property Valuation
In Ohio, the 'land residual technique' and 'building residual technique' are used in the income approach to:
ADetermine the depreciation of improvements
BSeparately determine the value attributable to land or to improvements in an income-producing property✓ Correct
CCalculate the effective tax rate on improvements
DEstimate the gross income of a property
Explanation
These residual techniques separate the total property value into its land and building components by capitalizing the income attributed to each. They are useful when one component's value is known.
Related Ohio Property Valuation Questions
- Which of the following BEST describes 'market value' in Ohio real estate appraisal?
- In Ohio, which of the following factors does NOT affect property value?
- In Ohio, the county auditor performs a mass appraisal of all properties every:
- A property's annual NOI is $42,000 and similar properties are selling at a 7% cap rate. What is the estimated value?
- What does 'effective age' mean in an appraisal?
- An Ohio appraiser makes a '+$5,000' adjustment to a comparable sale. This means the comparable:
- An Ohio home sold for $340,000. The listing broker claims a 6% commission. What is the total commission dollar amount?
- The income capitalization approach is MOST appropriate for valuing which type of Ohio property?
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