Property Valuation
What is 'contributory value' in Oregon appraisal?
AThe value of the property's location
BThe amount a specific feature or improvement actually adds to the total property value — which may be less than its cost✓ Correct
CThe value a neighbor's property contributes to the subject's value
DThe annual rental income contribution to overall value
Explanation
Contributory value is the actual amount of value a specific improvement or feature contributes to the total property value. It may differ significantly from cost. For example, adding a $60,000 swimming pool to an Oregon home might only add $20,000 in contributory value because buyers in that market don't pay proportionally for pools. Cost does not always equal contributory value.
Related Oregon Property Valuation Questions
- In a declining real estate market, which type of depreciation would most significantly affect property values?
- In the income approach to value, what does the term 'capitalization rate' represent?
- An appraiser notes that a comparable sale has a 3-car garage while the subject has only a 2-car garage. The appraiser would make which adjustment to the comparable?
- Functional obsolescence in a property is BEST illustrated by:
- An appraiser is comparing two Oregon properties: one on the east side of Portland (valued at $450,000) and one on the west side (valued at $650,000). The higher west-side value likely reflects:
- An Oregon appraiser is asked to provide a 'retrospective appraisal' (as of a past date). This means the appraiser:
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- A property generates a net operating income of $90,000 and is valued at $1,200,000. What is the capitalization rate?
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