Property Valuation
In Tennessee, when an appraiser says 'as improved' value, they mean the value of:
AThe land only, before construction
BThe property with existing improvements (buildings, structures) in place✓ Correct
CThe property after planned future renovations
DThe property's assessed value after improvements to the tax roll
Explanation
'As improved' value refers to the market value of the property as it currently exists with existing buildings and improvements in place, as opposed to 'as if vacant' (land only value).
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
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