Property Valuation
What is the 'cost approach' formula used by Kansas appraisers?
ANOI / Cap Rate = Value
BLand Value + (Reproduction/Replacement Cost New - Accrued Depreciation) = Value✓ Correct
CSale Price of Comparables / Adjustments = Value
DGross Rent x GRM = Value
Explanation
The cost approach formula is: Property Value = Land Value + (Cost to Reproduce or Replace the Improvements New - All Accrued Depreciation). It is particularly useful for new construction and special-use properties.
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