Property Valuation
In Wisconsin, the cost approach formula is:
AValue = Land + Replacement/Reproduction Cost − Depreciation✓ Correct
BValue = NOI ÷ Cap Rate
CValue = Sale Price × GRM
DValue = Assessed Value × Assessment Ratio
Explanation
The cost approach formula is: Indicated Value = Land Value + Depreciated Cost of Improvements. Cost minus all forms of depreciation (physical, functional, external) plus land value equals the indicated value.
Related Wisconsin Property Valuation Questions
- The principle of progression in property valuation 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:
- Functional obsolescence in a Wisconsin property refers to:
- A Wisconsin property appraiser who is hired by the lender must still provide an independent, unbiased opinion of value because:
- In the sales comparison approach, Wisconsin appraisers make adjustments when:
- A Wisconsin appraiser performing an appraisal for a federally related transaction must be:
- Wisconsin's use of 'comparable sales' in a CMA requires that the comparable properties be:
- In Wisconsin, 'gross rent multiplier' (GRM) is calculated as:
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