Property Valuation
The cost approach to valuation uses the formula:
ALand Value + Depreciated Cost of Improvements✓ Correct
BNOI ÷ Cap Rate
CSale Price ÷ Monthly Gross Rent
DAdjusted Sales Price of Comparable Properties
Explanation
The cost approach estimates value as land value (vacant) plus the cost to construct the improvements (new) minus accrued depreciation.
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