An appraiser is valuing a single-family home in a Florida community that has an active Community Development District (CDD). The property is subject to CDD assessments for infrastructure improvements, and the CDD bonds have 20 years remaining. A comparable property outside the CDD recently sold for a similar price, but the CDD property has newer infrastructure. How should this affect the valuation?
Correct Answer
C) Make adjustments based on market reaction to CDD assessments versus infrastructure benefits
The appraiser must consider how the market weighs CDD assessment costs against infrastructure benefits, as buyer perceptions vary. Option A oversimplifies the market reaction. Option B ignores the infrastructure value received. Option D unnecessarily limits the comparable pool if proper adjustments can be made.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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Previous Question
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?
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Florida's tangible personal property tax applies to all of the following business assets EXCEPT: