Property Valuation
Which appraisal approach estimates value by calculating the cost to reproduce or replace the improvements, minus depreciation, plus land value?
ASales comparison approach
BIncome capitalization approach
CCost approach✓ Correct
DGross rent multiplier method
Explanation
The cost approach estimates value by calculating the cost to reproduce or replace the existing improvements, deducting accrued depreciation, and adding the estimated land value. It is most reliable for new or special-purpose properties.
Related Hawaii Property Valuation Questions
- What is a 'desk top appraisal' (bifurcated appraisal) and how might it affect Hawaii mortgage lending?
- In Hawaii, what is 'comparable selection' in the appraisal process?
- In Hawaii, 'assemblage' in real estate refers to:
- What is 'functional obsolescence' in real estate appraisal?
- What is 'regression' and 'progression' in real estate value theory?
- In the cost approach to value, what is 'accrued depreciation'?
- In the income approach, the Gross Rent Multiplier (GRM) is calculated by dividing:
- In Hawaii, which appraisal term refers to the loss in value from all causes, both internal and external?
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →