What is the current value of a property if its land-to-improvements value ratio is 20% - 80%, and the improvements were built at $120/SF on a 3,000 SF house, after averaging $1,200 depreciation per year over 10 years?

To determine the current value of the property based on the given information, start by calculating the total cost of the improvements (the house itself). With improvements built at a rate of $120 per square foot for a 3,000 square foot home, the initial cost of the improvements can be found by multiplying the cost per square foot by the total square footage:

[

Cost\ of\ Improvements = $120/SF \times 3,000\ SF = $360,000

]

Next, to account for the depreciation of the improvements over ten years at an average rate of $1,200 per year, you can use the total depreciated amount:

[

Total\ Depreciation = $1,200/year \times 10\ years = $12,000

]

So now, subtract this total depreciation from the initial cost of improvements to get the current value of the improvements:

[

Current\ Value\ of\ Improvements = $360,000 - $12,000 = $348,000

]

Now that you have the current value of the improvements, you can determine the land value using the land-to-improvements ratio. Given that the land-to-improvements ratio is 20% (land)