Property Valuation
In Maine, the cost approach to value begins with an estimate of the:
AAnnual net operating income
BLand value as if vacant✓ Correct
CGross rent multiplier from market data
DCapitalization rate from investor surveys
Explanation
The cost approach starts with estimating land value (as if vacant and available for its highest and best use), then adds the depreciated cost of improvements to arrive at total property value.
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