Which approach to value would most likely be selected to determine the value of county court house

Your county Assessor and their appraisers use one or more of the three approaches to value to produce appraisals that are used by the Assessor to estimate fair market value for property tax purposes. The Cost Approach estimates value based on the typical cost of materials and labor necessary to build a structure of similar size and quality in that location while accounting for depreciation due to age and condition. The Sales Comparison Approach estimates value based upon the price, in the local market, necessary to acquire a property of similar location, quality, size, age, and condition. The Income Approach estimates value based upon typical market income of a similar property.

Cost Approach to Value

In the cost approach to value, the cost to acquire the land plus the cost of the improvements minus any accrued depreciation equals value.  Depreciation is a loss in value from any cause, and can take the form of physical deterioration, functional obsolescence, or economic obsolescence.  The underlying premise of the cost approach is that ‘a potential user of real estate won't, or shouldn't, pay more for a property than it would cost to build an equivalent.’ (PRINCIPLE OF SUBSTITUTION)

Sales Comparison Approach to Value

The sales comparison approach is directly rooted in the real estate market. The value of the subject property is equal to the sales prices of comparable properties plus or minus any adjustments.  The sales comparison approach compares a piece of property to other properties with similar characteristics that have been sold recently.  The sales comparison approach takes into account the affect that individual features have on the overall property value, meaning that the total value of the property is a sum of the values of all of its features.

Income Approach to Value

The income approach quantifies the present worth of future benefits associated with ownership of the real estate asset.  The income approach comes in two different forms:  net income approach and gross income approach.  Net income is what is left over after vacancy and collection loss and allowable expenses have been subtracted from the potential gross income.  The net income is divided by a capitalization rate (the investor’s desired rate of return) for an estimate of value.  In the gross income approach, the income is multiplied by a factor in order to arrive at the value.  The net income approach is typically seen on larger commercial occupancies like office buildings, retail, apartments and hotels / motels.  The gross income approach is typically seen on income producing residential properties.

A home having only one bathroom located next to the kitchen suffers from:

To appraise a special-use building, an appraiser would most likely use the:

Which approach to value would an appraiser be concerned with when calculating the present worth of future benefits?

The features that usually increase the value of residential property, such as a water view, nice landscaping, quiet neighborhood, etc. are known as __________ .

Which of the following type of depreciation is always incurable?

Chase bought a lot and constructed a high-quality home valued at $400,000 in a neighborhood of homes valued at $290,000. In appraisal terminology, the home would experience an immediate loss in value due to the principle of __________ .

Sean hired an appraiser to prepare a feasibility study for adding a swimming pool to a 12-unit apartment building. What basic principle of appraising would the appraiser use?

the price a willing seller will accept and a willing buyer will pay.

The method of appraisal that carries the most weight in the valuation of residential property is known as the: