ValuationAppraisal_methodsMEDIUM
The cost approach estimates value by:
Correct Answer
B) Replacement cost minus depreciation plus land value
Cost approach = Cost to replace improvements - Depreciation + Land value. Most useful for new construction and special-purpose properties.
Answer Options
A
Comparing recent salesB
Replacement cost minus depreciation plus land valueC
Capitalizing net incomeD
Using the tax assessmentWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Valuation Question
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Background Knowledge for Valuation
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Real World Application in Valuation
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Common Mistakes to Avoid on Valuation Questions
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Related Topics & Key Terms
Related Topics:
replacementdepreciationland-value
Key Terms:
cost approachreplacementdepreciationland
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