Property Valuation
In the cost approach, the appraiser estimates value by:
AComparing recent sales of similar properties
BDividing NOI by the cap rate
CEstimating land value plus depreciated cost of improvements✓ Correct
DAveraging three previous appraisals
Explanation
The cost approach estimates value as land value plus the current cost to reproduce or replace the improvements, minus accrued depreciation from all causes.
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