Property Valuation
In the cost approach to value, the appraiser estimates:
AIncome multiplied by a cap rate
BLand value plus the cost to replace improvements minus depreciation✓ Correct
CAverage of recent comparable sales
DGross rent times a market-derived multiplier
Explanation
The cost approach estimates value as land value plus the depreciated cost to replace (or reproduce) the improvements. It is most useful for new construction and special-use properties.
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