Practice & MathCâu 86 / 100
In the cost approach, the appraiser estimates value by:
a.Capitalizing the net operating income
b.Multiplying gross rent by a factor
c.Adding land value to the depreciated cost of improvements
d.Comparing only to foreclosure sales
Giải thích
The cost approach estimates value as the cost to replace or reproduce the improvements, minus depreciation, plus the land value. It is especially useful for new, unique, or special-purpose properties. Depreciation accounts for physical, functional, and external loss in value.
Luyện miễn phí toàn bộ 100 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- The appraisal approach that estimates value by comparing recently sold similar properties is the:
- The appraisal approach most appropriate for valuing an income-producing apartment building is the:
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- Approximately how many acres is a parcel containing 87,120 square feet?
- A home sells for $320,000 and the total commission rate is 6%. What is the total commission?
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