When using the summation approach for property valuation, what does the valuer need to deduct from the total replacement cost?
Correct Answer
C) Accrued depreciation of the building improvements
In the summation approach, the valuer calculates land value plus current replacement cost of improvements, then deducts accrued depreciation. This accounts for the age, condition, and functional obsolescence of the building.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Common Mistakes to Avoid on Valuation Questions
More Valuation Questions
In applying the summation approach to value a heritage-listed property in Sydney, which additional factor must be specifically considered?
When conducting a property valuation in Queensland, what is the most critical consideration regarding comparable sales data?
In Queensland, the statutory land valuation that councils use to levy rates is made by:
The comparable sales method of property valuation involves:
A Queensland property owner disagrees with the Valuer-General's valuation of their land. The owner may:
- → When valuing an income-producing property in Queensland using the capitalisation approach, a valuer primarily considers:
- → In Queensland, the 'highest and best use' principle in property valuation refers to:
- → A registered valuer in Queensland is valuing a specialised property such as a church with no comparable sales data available. The most appropriate primary valuation method would be:
- → A Comparative Market Analysis (CMA) prepared by a Queensland real estate agent differs from a formal valuation in that:
- → A developer in Queensland is considering purchasing a site for a residential subdivision. A valuer using the residual (hypothetical development) method would calculate the site's value by:
- → Which of the following factors would typically DECREASE the market value of a residential property in Queensland?
- → What is the difference between 'site value' and 'capital value' as used by the Valuer-General in SA?
- → When valuing a rural property in SA, which of the following is a key factor that distinguishes it from suburban residential valuation?
- → Which government body is responsible for land valuations used for council rating purposes in SA?
- → What are the three main valuation bases used by the Valuer-General in SA for statutory purposes?
People Also Study
Property Law & Legislation
110 questions
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions