Property Valuation
A Wisconsin appraiser calculates accrued depreciation by using the:
AStraight-line method, market extraction method, or age-life method✓ Correct
BCap rate only
CSales comparison approach only
DIRS depreciation schedule
Explanation
Appraisers use several methods to estimate accrued depreciation including the straight-line (age/life) method, market extraction (comparing sales with known depreciation), and breakdown method.
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Key Terms to Know
Capitalization Rate (Cap Rate)
A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
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