Property Valuation
A West Virginia appraiser using the 'cost approach' would account for 'accrued depreciation,' which includes:
AThe replacement cost of improvements only
BPhysical deterioration, functional obsolescence, and external (economic) obsolescence✓ Correct
CThe land's appreciation over time
DFuture income from the property
Explanation
Accrued depreciation in the cost approach encompasses all loss in value from: physical deterioration (wear and age), functional obsolescence (design deficiencies), and external/economic obsolescence (outside factors). The depreciated cost of improvements plus land equals the value indication.
Related West Virginia Property Valuation Questions
- In West Virginia, a property appraiser uses 'bracketing' to validate adjustments. The appraiser selects comparable A (superior feature) and comparable B (inferior feature). This technique:
- External obsolescence (economic or locational obsolescence) in a West Virginia appraisal is caused by:
- In the sales comparison approach, adjustments are made to the comparable properties because:
- Regression and progression are real estate valuation principles. Regression means:
- A West Virginia property is assessed at $120,000 with an equalization rate of 60%. What is the assessed value for tax purposes?
- The capitalization rate (cap rate) formula used to value income property in West Virginia is:
- In the income approach, a West Virginia appraiser uses an overall capitalization rate (OAR). A lower OAR applied to the same NOI results in a:
- An appraiser's final reconciliation of value in a West Virginia appraisal involves:
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