Property Valuation
In Tennessee, an appraiser who finds no truly comparable sales in the area may use:
AOnly the cost approach
BSales from an expanded geographic area or time period with additional explanatory analysis✓ Correct
COnly the income approach
DNo appraisal can be completed in such cases
Explanation
When comparable sales are limited, appraisers may expand the geographic search area or use older sales with time adjustments, explaining the limited comparables in the report.
Related Tennessee Property Valuation Questions
- Regression in real estate valuation means that:
- In Tennessee, the 'overall rate' (OAR) used in the income approach is also known as the:
- In Tennessee, when an appraiser says 'as improved' value, they mean the value of:
- When an appraiser uses the direct comparison approach, the final value indication is most influenced by:
- A Chattanooga home's market value is $275,000. The replacement cost of improvements is $230,000, the lot value is $55,000, and total depreciation is $30,000. What is the cost approach value?
- The effective age of a building refers to:
- In the cost approach to value, 'depreciation' is best defined as:
- In Tennessee, which type of depreciation is caused by changes in the surrounding neighborhood, such as industrial development near a residential area?
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