Property Valuation
A Wyoming appraiser determines the 'remaining economic life' of a building as 30 years. This is relevant to the cost approach because:
AIt determines how long the property can be rented
BIt helps estimate accrued depreciation as a percentage of total economic life✓ Correct
CIt establishes the legal life of the property
DIt determines the maximum loan term available for the property
Explanation
In the cost approach, total economic life and remaining economic life are used to calculate accrued depreciation. Age-Life Method: Depreciation = Effective Age ÷ Total Economic Life.
Related Wyoming Property Valuation Questions
- The principle of substitution in appraisal states that:
- Depreciation in the cost approach to value includes all of the following EXCEPT:
- A Wyoming property appraiser making adjustments in the sales comparison approach adjusts:
- In Wyoming, the sales comparison approach relies on:
- A Wyoming commercial property's effective gross income (EGI) is calculated as:
- A Wyoming home is valued at $340,000 today. If properties are appreciating at 4% annually, what will it be worth in 2 years?
- In the income capitalization approach, the capitalization rate is determined by:
- In Wyoming, 'effective age' of a property differs from 'actual age' because:
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