Property Valuation
When appraising a Pennsylvania historic building, the appraiser should:
AUse only the cost approach since historic buildings are unique
BIgnore historic tax credits as they are not relevant to value
CConsider all three approaches and give appropriate weight to each, factoring in tax credits if applicable✓ Correct
DApply only the income approach because historic buildings are always income-producing
Explanation
For historic properties, all three approaches (sales comparison, income, cost) should be considered. Pennsylvania historic preservation tax credits and federal historic tax credits may affect investment value and should be factored into the income approach for income-producing properties.
Related Pennsylvania Property Valuation Questions
- An appraiser performing a Pennsylvania residential appraisal must be licensed or certified under which federal-state framework?
- What is 'regression and progression' as applied to real estate value in Pennsylvania?
- What is an 'appraisal management company' (AMC) and how does it affect Pennsylvania real estate transactions?
- Depreciation for appraisal purposes is:
- In a Pennsylvania residential appraisal, what is the significance of 'concessions' when analyzing comparable sales?
- What is the 'cost approach' to appraisal and when is it most reliable in Pennsylvania?
- In Pennsylvania's Pittsburgh market, a comparable sale that closed 8 months ago may require what type of appraisal adjustment?
- When using the cost approach to value a Pennsylvania property, the formula is:
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →