In Florida appraisal practice, the cost approach typically considers all of the following types of depreciation EXCEPT:
Correct Answer
D) Market appreciation
Market appreciation is not a form of depreciation; it represents an increase in value over time. Physical deterioration refers to wear and tear from use and aging. Functional obsolescence involves outdated design or features. External obsolescence results from factors outside the property affecting its value negatively.
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More Valuation Appraisal Questions
Physical deterioration in Florida is often caused by:
The income approach to value would typically NOT be the primary approach for which of the following Florida properties?
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- → Assume a Florida homestead is subject to a 3% Save Our Homes cap for the coming year. If last year's assessed value was $180,000, what is the capped assessed value before any exemption is subtracted?
- → A Florida homeowner's property is assessed at $450,000 for tax purposes. The property qualifies for homestead exemption and has Save Our Homes (SOH) protection with a 3% annual cap increase from the previous year's assessed value of $425,000. What is the maximum assessed value for the current tax year?
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- → When appraising property affected by sinkholes in Florida, all of the following factors should be considered EXCEPT:
- → A Florida licensee preparing a CMA has three adjusted comparable sale prices: $325,000, $332,000, and $338,000. What is the average adjusted indication?
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Previous Question
An appraiser in Fort Lauderdale is reconciling the three approaches to value for a small retail strip center. The cost approach indicates $1,200,000, the sales comparison approach indicates $1,350,000, and the income approach indicates $1,275,000. How should the appraiser determine the final value opinion?
Next Question
A Florida appraiser is valuing a gas station in Gainesville that has environmental contamination issues. The property has been remediated, but market perception remains negative. Recent sales of similar gas stations are limited, and the current operator's lease expires in two years. Which approach would likely be most challenging to apply reliably?