Property Valuation
Depreciation in appraisal refers to:
AAn IRS tax deduction for income property owners
BAny loss in value from any cause compared to the cost new✓ Correct
CThe amortization of the purchase price over the building's useful life
DThe decline in assessed value over time
Explanation
In appraisal, depreciation is any loss in value from any cause (physical deterioration, functional obsolescence, or external obsolescence) compared to what it would cost to replace or reproduce the improvement as new.
Related Tennessee Property Valuation Questions
- Comparative Market Analysis (CMA) is typically prepared by a:
- The 'before and after' method of appraisal is used in cases of:
- A site that is physically and legally unsuitable for the proposed highest and best use is said to lack:
- If a property has both an older home and a vacant lot and the appraiser concludes the highest and best use is to demolish the home and build condominiums, this analysis supports a:
- The income approach to value is most appropriate for:
- In the income approach, effective gross income (EGI) is calculated as:
- Plottage (assemblage) refers to:
- When using the gross rent multiplier (GRM), if a property rents for $1,500/month and comparable properties sell at a GRM of 120, what is the estimated value?
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