In using the cost approach in California, an appraiser must estimate the land value separately from the improvements. Which method is MOST commonly used to estimate land value for a residential property in California?
Correct Answer
A) The sales comparison approach using comparable vacant land sales in the California market
The most reliable and commonly used method to estimate land value for the cost approach is the sales comparison approach using comparable vacant land sales. In California, this involves analyzing recent sales of similar vacant lots in the area and adjusting for differences in size, location, zoning, and other factors.
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A California appraiser is estimating the cost to cure functional obsolescence in a home in San Jose. The home has a 1-car garage in a market where 2-car garages are standard. The cost to convert to a 2-car garage is $45,000, and the market value added by the conversion is $55,000. Is this functional obsolescence curable, and what is the depreciation amount to apply?
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An appraiser in California is deciding between using reproduction cost and replacement cost for a historic Victorian home in San Francisco's Painted Ladies neighborhood. Which cost method is MOST appropriate and why?