Sandra is a licensed Nevada real estate salesperson helping a buyer evaluate a commercial investment property in Las Vegas. The buyer asks how Nevada determines the 'taxable value' of improved real property for assessment purposes. Which of the following best describes Nevada's method for determining taxable value of improved real property?
Correct Answer
B) The replacement cost of improvements less depreciation, plus the full cash value of the land
Under NRS 361.227, the taxable value of improved real property in Nevada is determined by the replacement cost of the improvements (structures) less depreciation, plus the full cash value of the land. This cost approach is the primary statutory method used by Nevada county assessors and is unique in that it uses replacement cost (not market value) for improvements. The assessed value is then 35% of this taxable value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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