Property Valuation
A Mississippi appraiser is valuing a new custom home in a flood zone near the Gulf Coast. The cost approach would include all of the following EXCEPT:
ALand value
BDepreciation
CReproduction or replacement cost of improvements
DNet operating income✓ Correct
Explanation
The cost approach estimates value as land value plus replacement/reproduction cost minus depreciation. Net operating income is used in the income approach, not the cost approach.
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