Property Valuation
Which appraisal approach estimates value by calculating the cost to replace or reproduce improvements minus depreciation, plus land value?
ASales comparison approach
BIncome approach
CCost approach✓ Correct
DGross rent multiplier approach
Explanation
The cost approach values property as land value plus the depreciated cost of improvements. It is most useful for new construction or special-use properties.
Related New Jersey Property Valuation Questions
- The 'principle of contribution' in appraisal states that the value of a component is measured by:
- The principle of contribution states that the value of a component part of a property is:
- Plottage value is the:
- Which principle of value states that the value of a property is enhanced by its conformity with surrounding properties?
- When comparing sales in the sales comparison approach, a positive adjustment is made to the comparable when:
- An appraiser makes a paired sales analysis to determine the market value contribution of a garage. This technique:
- In a NJ appraisal, 'market value' is most accurately defined as:
- Market value is defined as:
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →