Cost approach:
Correct Answer
C) Replacement - depreciation + land
Replacement cost minus depreciation plus land value.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
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Which of the following best describes how Utah's rapid population growth, driven partly by Silicon Slopes tech expansion, has affected housing affordability?
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- → The income approach to appraisal is most commonly used for which type of property?
- → External obsolescence in Oklahoma:
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → A Comparative Market Analysis (CMA) is best described as which of the following?
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Previous Question
A Colorado licensee is representing a buyer purchasing a $900,000 single-family home in a Colorado mountain municipality that imposes a 1% local transfer tax. The seller's listing agent insists that the seller is entitled to a credit for half the transfer tax because 'Colorado law requires equal splitting of all transfer taxes.' The buyer's licensee suspects this is incorrect. Which of the following best describes the correct legal and contractual position?
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Cost approach: