Property Valuation

In South Carolina, what is 'depreciated cost' in the cost approach to appraisal?

AThe original construction cost
BThe reproduction or replacement cost of improvements minus accrued depreciation✓ Correct
CThe assessed value minus appreciation
DThe market value minus land value

Explanation

Depreciated cost in the cost approach equals the reproduction or replacement cost of improvements less all accrued depreciation (physical, functional, and external). Adding land value to depreciated cost gives the value indication via the cost approach.

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