Property Valuation
An appraiser in Austin, Texas values a recently renovated historic bungalow in a gentrifying neighborhood. The key challenge is:
AThe property has no value since it is historic
BFinding recent comparable sales that account for the renovation quality and the gentrification premium✓ Correct
CThe cost approach is the only valid approach for historic properties
DTREC limits appraised values of historic properties
Explanation
In rapidly gentrifying neighborhoods, finding recent comparable sales that reflect current buyer demand, renovation quality, and neighborhood trends is the primary challenge. The appraiser must use the most current market data to capture the gentrification premium.
Related Texas Property Valuation Questions
- Texas mixed-use properties present appraisal challenges because:
- In Texas, homestead exemptions reduce the taxable value of a primary residence. The standard homestead exemption for school district taxes (mandatory state minimum) is:
- Accrued depreciation in the cost approach refers to:
- A Texas appraisal 'scope of work' determination is made:
- A Texas commercial appraiser uses 'discounted cash flow' (DCF) analysis for a 10-year hold period. The discount rate used reflects:
- In Texas, a 'depreciated cost' estimate for appraisal purposes involves subtracting which types of depreciation from the reproduction or replacement cost?
- The principle of 'contribution' in real estate appraisal means:
- External obsolescence (economic obsolescence) is caused by factors:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →