Property Valuation
In the cost approach, accrued depreciation is estimated from the perspective of the:
AContractor who built the property
BMarket (what a buyer would deduct from replacement cost)✓ Correct
CCounty assessor's depreciation schedule
DInsurance replacement value
Explanation
In the cost approach, accrued depreciation represents the loss in value from all causes (physical deterioration, functional obsolescence, external obsolescence) as perceived by the market — not accounting or tax depreciation.
Related West Virginia Property Valuation Questions
- The capitalization rate (cap rate) formula used to value income property in West Virginia is:
- In West Virginia, the principle of anticipation states that value is created by:
- The principle of substitution, which underlies all three approaches to value, states that:
- An appraisal of a West Virginia property that is being donated to a charity requires the appraiser to comply with:
- An arm's-length transaction for real estate valuation purposes is a sale:
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- Market value in a real estate appraisal is defined as the most probable price a property will sell for:
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