Chapter 12

The cost approach

Build it new, take off depreciation, add the land

An explorable chapter on the cost approach for the real estate exam: cost new by the square foot, replacement and reproduction cost, age-life depreciation, physical, functional and external obsolescence, and adding the land.

1. 12.1
   Cost newSquare feet times today's cost to build
2. 12.2
   Age-life depreciationEffective age over economic life
3. 12.3
   Three kinds of depreciationWear, bad design, and trouble next door
4. 12.4
   Add the landLand is valued on its own and never depreciated
5. 12.5
   One house, built againThe whole cost approach, worked on a new house

1 interactive 3D scene · 3 slider tasks · 3 practice sets · 14 questions