Property Valuation
In Michigan, the cost approach to value estimates:
AThe property's income potential
BComparable sales adjusted for differences
CThe land value plus depreciated cost of improvements✓ Correct
DThe highest offer received from buyers
Explanation
The cost approach estimates value by calculating the land value separately and adding the depreciated cost to reproduce or replace the existing improvements.
Related Michigan Property Valuation Questions
- In Michigan, 'assessed value' differs from 'appraised value' because:
- A Michigan appraiser performing a '1004 UAD' (Uniform Appraisal Dataset) residential appraisal must:
- Which type of depreciation is generally considered incurable in Michigan appraisal?
- In Michigan, which of the following would NOT be considered a comparable sale for appraisal purposes?
- In Michigan, 'market area analysis' for an appraisal involves examining:
- In Michigan, an ARM's length transaction used in appraisal comparables means:
- In Michigan, 'appraisal independence' requirements under Dodd-Frank and HVCC require that:
- Functional obsolescence in a property refers to:
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