Chapter 16 - Comparative and Cost Approach of Appraisal

Question 1

Similar properties

Answer 1

building characteristics - design, construction and maintenance, equipment, age
lot characteristics - natural feature, proximity to man-made amenities, size
Title and conditions of sale -

Question 2

site value

Answer 2

market value of land

Question 3

physical depreciation

Answer 3

building elements tangibly inadequate, whether broken, defective or worn out

Question 4

functional depreciation

Answer 4

adequately fulfilling their purpose, but below market standards (outdated design)

Question 5

external depreciation

Answer 5

outside property and beyond owner’s control (locational factors, neighbouring uses, economic factors)

Question 6

Cost approach

Answer 6

limited practical use: insurance, property tax assessment, church, public buildings, special use properties