Property Valuation
A Wisconsin appraiser using the cost approach estimates the value of a 25-year-old building using the 'age-life method' for depreciation. If the building has a 50-year economic life, effective age is 20 years, and replacement cost new is $500,000, the depreciated value is:
A$250,000
B$300,000✓ Correct
C$350,000
D$400,000
Explanation
Depreciation rate = Effective Age / Economic Life = 20/50 = 40%. Depreciation = $500,000 × 40% = $200,000. Depreciated value = $500,000 - $200,000 = $300,000.
Related Wisconsin Property Valuation Questions
- Under Wisconsin law, a property owner who disagrees with their assessment may first appeal to the:
- Highest and best use in Wisconsin appraisal means the use that is:
- A Wisconsin appraiser makes a negative adjustment to a comparable sale because the comparable has a feature the subject property lacks. This means the comparable sold for:
- Accrued depreciation in a Wisconsin appraisal refers to:
- In the sales comparison approach, a positive adjustment to a comparable sale means:
- The 'principle of contribution' in Wisconsin appraisal means:
- A Comparative Market Analysis (CMA) in Wisconsin is performed by a:
- A Wisconsin appraiser who finds that the comparable sales indicate a lower value than the cost approach should generally:
Practice More Wisconsin Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wisconsin Quiz →