Basic Appraisal Procedures 117 Questions with 100% Correct Answers | Verified | Updated 2024

Site - ️️Land that is improved so that it is ready to be used for a specific purpose Separate Site Valuations - ️️Cost approach Assessments and taxation Condemnation appraisals Certain income capitalization methods Highest and best use analysis Cost Approach (summation approach) - ️️Site Value + Depreciation Depreciation - ️️Cost New SALES COMPARISON - ️️Comparison with recent sales--Most Commonly Used--Most Accurate--Must have adequate market data--adjustments to the comparable sales may be made either on a quantitative or qualitative basis--Quantitative adjustments are usually made on a percentage or dollar basis. EXTRACTION - ️️Subtracts estimated improvement value to arrive at land value ALLOCATION - ️️Uses land-to-value ratios based on improved sale comparables SUBDIVISION DEVELOPMENT - ️️Subtracts estimated development costs from discounted sale proceeds LAND RESIDUAL - ️️Divides up and capitalizes the income between land and improvements