Property Valuation
Under the cost approach, 'accrued depreciation' refers to:
AThe total decline in value from all causes — physical deterioration, functional obsolescence, and external obsolescence✓ Correct
BOnly the physical wear and tear of the building
CThe tax depreciation taken each year under IRS rules
DThe difference between the original cost and the replacement cost
Explanation
In appraisal, accrued depreciation is the total loss in value from all causes: physical deterioration (curable and incurable), functional obsolescence (curable and incurable), and external (economic) obsolescence. It is subtracted from the reproduction/replacement cost to estimate the depreciated value of improvements.
Related Oregon Property Valuation Questions
- In real estate appraisal, the term 'market value' is best defined as:
- An Oregon appraiser is asked to provide a 'retrospective appraisal' (as of a past date). This means the appraiser:
- Which of the following would INCREASE the value of a property according to appraisal principles?
- What is the 'principle of competition' and how does it affect Oregon real estate investment decisions?
- What is 'plottage value' in Oregon real estate?
- In a formal appraisal report, the appraiser certifies that their opinion of value is independent and unbiased. This certification is required under:
- An Oregon appraiser is valuing a new commercial building using the cost approach. Which of the following best describes 'replacement cost'?
- Which Oregon property type is MOST likely to be appraised using the income capitalization approach as the PRIMARY method?
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →