What is the formula for calculating the depth factor in real estate appraisals?

The formula for calculating the depth factor in real estate appraisals is derived from comparing the dimensions of a specific lot to a standard lot size. The depth factor is determined by taking the actual lot depth and dividing it by the standard lot depth. This method allows appraisers to assess how much value a lot's depth contributes to its overall valuation, particularly in markets where lot sizes may vary significantly.

Using actual lot depth in relation to a standardized measurement gives a clear picture of how the specific lot dimensions compare to what is considered typical or average in the market. Since real estate values are often influenced by the size and shape of a property, understanding the depth factor is crucial for accurate appraisals.

The other options do not correctly reflect how to calculate the depth factor. For instance, multiplying the actual lot depth by the standard lot depth or using the square of the standard lot depth does not yield a meaningful comparison regarding the depth's valuation in real estate assessments.