Property Valuation
What does 'land residual technique' mean in Rhode Island real estate appraisal?
AA technique for estimating the value of improvements only
BA technique for estimating land value by subtracting the value of improvements from total property value✓ Correct
CA method for calculating depreciation of land
DA technique used only for agricultural land
Explanation
The land residual technique estimates land value by deducting the value of improvements (structures) from the total property value. It is used when building value can be reliably estimated but land value is uncertain.
Related Rhode Island Property Valuation Questions
- In Rhode Island, what is the 'subject property' in an appraisal?
- An appraiser in Providence uses three comparable sales. The first indicates $400,000, the second $410,000, and the third $390,000. The appraiser gives the most weight to the best comparable. If the third comp is most similar to the subject, what final value might the appraiser conclude?
- An appraiser notes that a Rhode Island property has 'superadequacy.' This refers to:
- A property listed for $375,000 receives an appraisal of $355,000. The most likely outcome is:
- The principle of substitution in appraisal states that:
- In Rhode Island, what is 'plottage value'?
- A Rhode Island appraiser identifies a property's 'effective date' of appraisal. This refers to:
- What is 'income capitalization' as used by Rhode Island appraisers?
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →