An appraiser is valuing a historic property in St. Augustine that is listed on the National Register of Historic Places. The property has deed restrictions limiting modifications and requires special permits for any changes. The owner has received offers from developers who want to demolish the structure, but local preservation ordinances may prevent this. What valuation approach is most problematic in this situation?
Correct Answer
D) Highest and best use analysis considering development potential
Highest and best use analysis considering development potential is most problematic because preservation restrictions severely limit or eliminate development options. Option A is appropriate using similar restricted properties. Option B, while complex, can be done with proper expertise. Option C is viable if the property can generate income within its restrictions.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Valuation Appraisal Question
Background Knowledge for Valuation Appraisal
Real World Application in Valuation Appraisal
Common Mistakes to Avoid on Valuation Appraisal Questions
Related Topics & Key Terms
Key Terms:
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?
A Florida homeowner sees a current market value estimate of $410,000 but an assessed value of only $300,000 because of long-term assessment limits. What is the dollar difference between market value and assessed value?
All of the following information should typically be included in a Florida CMA EXCEPT:
When appraising mobile homes in Florida, all of the following factors typically affect value EXCEPT:
- → 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?
- → Under Florida law, all of the following factors must be considered when appraising agricultural property for ad valorem tax purposes EXCEPT:
- → 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?
- → A Florida property owner is appealing their property tax assessment. The property has a market value of $380,000, qualifies for a $50,000 homestead exemption, and has additional exemptions totaling $15,000. If the millage rate is 18.5 mills, what is the annual property tax?
- → A Florida property has an assessed value of $340,000. Ignoring any additional exemption and focusing only on the basic homestead exemption, what is the taxable value for school taxes?
- → In a Florida sales-comparison problem, a comparable sold for $465,000. The comparable is inferior to the subject in one item requiring a +$12,000 adjustment and superior in another item requiring a -$7,000 adjustment. What is the adjusted sale price of the comparable?
- → In Florida appraisal practice, the cost approach typically considers all of the following types of depreciation EXCEPT:
- → Which statement best describes Florida's rule on Florida-specific market influences on approach selection?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
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?
Next Question
When appraising mobile homes in Florida, all of the following factors typically affect value EXCEPT: