Real Estate Math
An appraiser estimates land value at $80,000 and the depreciated value of improvements at $195,000. What is the estimated property value using the cost approach?
A$195,000
B$255,000
C$275,000✓ Correct
D$295,000
Explanation
Cost approach value = Land Value + Depreciated Improvement Value = $80,000 + $195,000 = $275,000. Using the values given ($80,000, $195,000), apply the appropriate formula.. The correct answer is $275,000.. This is a common calculation on the Illinois real estate exam.
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