Property Valuation
In the cost approach, the formula for value is:
ANOI ÷ Cap Rate
BLand Value + Depreciated Cost of Improvements✓ Correct
CSales Price of Comparables ÷ Adjustments
DGross Rent × GRM
Explanation
The cost approach formula is: Value = Land Value + Replacement/Reproduction Cost of Improvements − Depreciation.
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