Property Valuation
An appraiser is using the cost approach to value a Virginia home. The land is valued at $50,000, the reproduction cost of the structure is $200,000, and depreciation is estimated at $30,000. What is the indicated value?
A$170,000
B$220,000✓ Correct
C$230,000
D$250,000
Explanation
Cost approach value = Land value + (Reproduction cost − Depreciation) = $50,000 + ($200,000 − $30,000) = $50,000 + $170,000 = $220,000.
Related Virginia Property Valuation Questions
- In Virginia, a 'limited appraisal' under USPAP may be used when:
- A Virginia appraiser calculating the 'gross rent multiplier' (GRM) method uses the property's:
- A Hampton Roads investor evaluates two properties: Property A (NOI $50,000, value $625,000) and Property B (NOI $40,000, value $444,444). Which has the higher cap rate?
- In Virginia's Richmond market, what type of residential appraisal methodology do Fannie Mae and Freddie Mac require for single-family home purchases?
- An appraiser uses the 'income capitalization approach' and determines the capitalization rate by the 'band of investment method.' This method is based on:
- In Virginia's Northern Virginia market, the most relevant comparables for a sales comparison appraisal should be located:
- A Virginia appraiser is valuing a waterfront property on the Chesapeake Bay. The appraiser must specifically consider:
- A Virginia appraiser determines that a comparable sale occurred under 'atypical motivation' — the seller was under severe financial distress. This sale is considered:
Practice More Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Virginia Quiz →