Property Valuation
The cost approach to value estimates property value by:
AComparing recent sales of similar properties
BCapitalizing the net operating income
CEstimating land value plus depreciated cost of improvements✓ Correct
DMultiplying gross rent by a gross rent multiplier
Explanation
The cost approach calculates value as the estimated land value plus the cost to replace or reproduce the improvements minus accrued depreciation.
Related Indiana Property Valuation Questions
- An Indiana appraiser who adjusts a comparable sale for market conditions is making a:
- In Indiana, 'market value' as used in appraisal is best defined as:
- Indiana's New Markets Tax Credit (NMTC) program is relevant to appraisal when:
- Indiana's Point-in-Time valuation requires the appraiser to determine value as of:
- In Indiana, a 'before and after' analysis is most commonly used in:
- Which of the following statements about depreciation in the cost approach is correct?
- Indiana's requirement that assessments reflect market value is measured by the State Board of Tax Commissioners through:
- In Indiana, 'gross living area' (GLA) as used in residential appraisal includes:
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