Property Valuation
In Missouri, the 'cost approach' to appraisal estimates value as:
AAnnual rent multiplied by GRM
BLand value plus depreciated cost of improvements✓ Correct
CRecent sale prices of similar properties
DNOI divided by cap rate
Explanation
The cost approach estimates property value as: Land Value + Depreciated Cost of Improvements. The cost of improvements is first estimated at current replacement/reproduction cost, then depreciation is subtracted.
Related Missouri Property Valuation Questions
- The principle of substitution in Missouri appraisal states that:
- In Missouri, a 'desk review' of an appraisal involves:
- A Missouri residential property's gross rent multiplier (GRM) is 120, and it rents for $1,500/month. Its estimated market value is:
- In Missouri, economic life of an improvement refers to:
- In Missouri, 'paired sales analysis' is a technique appraisers use to:
- In Missouri, 'comparable sales' used in the sales comparison approach should be:
- A comparable property sold 6 months ago at $300,000 in a market with 2% annual appreciation. What is the time-adjusted value of the comparable for today?
- The principle of anticipation in Missouri appraisal states that:
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →