Property Valuation
In the cost approach to value, an appraiser estimates the value of a property by calculating:
AThe present value of future income streams
BThe land value plus the cost to reproduce or replace improvements, minus depreciation✓ Correct
CThe average sale price of comparable properties
DThe gross rent multiplied by the monthly rent
Explanation
The cost approach estimates value as land value plus the cost to reproduce or replace improvements (at current construction costs) minus accumulated depreciation.
Related Hawaii Property Valuation Questions
- In Hawaii, what is the effect of a lava zone 1 or 2 designation on property insurance?
- In Hawaii, which principle states that the value of a property is affected by the value of surrounding properties?
- A Hawaii rental property has a net operating income of $60,000. If the cap rate is 5%, what is the indicated value?
- Which appraisal approach is most appropriate for a Hawaii church or school with no comparable sales?
- The appraisal term 'as improved' in Hawaii means the value of a property:
- Which type of depreciation is considered incurable and arises from factors outside the property's boundaries?
- A Hawaii residential property has a gross monthly rent of $3,500 and a gross rent multiplier (GRM) of 180. What is the estimated value?
- What is 'drive time analysis' in commercial real estate site selection in Hawaii?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →