Property Valuation
In Nevada, the cost approach to appraisal involves which calculation?
ASale Price ÷ Gross Rent
BLand Value + Depreciated Cost of Improvements✓ Correct
CNOI ÷ Capitalization Rate
DAverage of comparable sale prices
Explanation
The cost approach estimates value as Land Value + Depreciated Replacement (or Reproduction) Cost of Improvements. It is most useful for new properties, unique buildings, and special-use properties with few comparables.
Related Nevada Property Valuation Questions
- Depreciation in the cost approach to appraisal is defined as:
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