Property Valuation
What is the cost approach formula used in Nevada real estate appraisal?
AValue = NOI / Cap Rate
BValue = Land Value + Reproduction/Replacement Cost New – Depreciation✓ Correct
CValue = Sales Price of Comparable / Gross Rent
DValue = Purchase Price + Improvements – Liens
Explanation
The cost approach formula is: Value = Land Value + (Reproduction or Replacement Cost New of Improvements – Accrued Depreciation). Land is valued separately (land doesn't depreciate) and added to the depreciated cost of improvements.
Related Nevada Property Valuation Questions
- The cost approach to value is most useful for appraising:
- What is the principle of conformity in Nevada real estate appraisal?
- What is 'functional obsolescence' in real estate appraisal and give a Nevada example?
- What is 'redevelopment potential' and how does it affect valuation in Nevada?
- What is a 'limiting condition' in an appraisal report and give a Nevada example?
- Economic obsolescence (external obsolescence) in an appraisal refers to:
- In Nevada, functional obsolescence in an appraisal is a loss of value caused by:
- What is 'over-improvement' and how does it affect Nevada home value?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →