Property Valuation
In Hawaii, the 'market extraction' method for estimating depreciation involves:
AA. Extracting soil samples to determine land contamination
BB. Analyzing comparable sales to calculate the implied depreciation in the market✓ Correct
CC. Extracting the historical cost from county tax records
DD. Separating the income stream from building and land
Explanation
Market extraction compares the depreciated cost approach value to actual sales prices to derive the total accrued depreciation implied by the market.
Related Hawaii Property Valuation Questions
- In Hawaii, what is 'absorption rate' in real estate market analysis?
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