Property & OwnershipQuestion 90 of 120
The appraisal approach that estimates value based on the cost to rebuild the improvements, minus depreciation, plus land value, is the:
a.Sales comparison approach
b.Income approach
c.Cost approach
d.Gross income approach
Explanation
The cost approach estimates value as the current cost to construct the improvements new, less accrued depreciation, plus the value of the land. It is most useful for new or special-purpose properties with few comparable sales.
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