Property Valuation
A Wisconsin property has a going-concern value. Going-concern value differs from real property value because it includes:
AOnly the land value
BThe value of the business operation plus the real estate as a whole✓ Correct
COnly the furniture and fixtures
DOnly the real estate, excluding business value
Explanation
Going-concern value is the value of a business operation in place, including real estate, personal property, business value (intangibles), and other assets. Appraisers must separate the components for real estate-only valuations.
Related Wisconsin Property Valuation Questions
- External (economic) obsolescence differs from functional obsolescence because it results from:
- The principle of progression in property valuation states that:
- A Wisconsin residential appraisal is required to include a neighborhood analysis because:
- The principle of substitution in Wisconsin appraisal practice states that:
- The Wisconsin sales comparison approach adjusts comparable sales for differences from the subject. An adjustment for a bathroom the comparable lacks is a:
- Which appraisal approach would a Wisconsin appraiser give the LEAST weight to when valuing a single-family home?
- 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:
- An appraiser determines a Wisconsin property's value using the income approach. The property has an annual NOI of $45,000 and a cap rate of 9%. What is the indicated value?
Practice More Wisconsin Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wisconsin Quiz →