Property Valuation
A Chattanooga home's market value is $275,000. The replacement cost of improvements is $230,000, the lot value is $55,000, and total depreciation is $30,000. What is the cost approach value?
A$255,000✓ Correct
B$275,000
C$285,000
D$200,000
Explanation
Cost approach value = Land + (Replacement cost − Depreciation) = $55,000 + ($230,000 − $30,000) = $55,000 + $200,000 = $255,000.
Related Tennessee Property Valuation Questions
- In Tennessee, USPAP (Uniform Standards of Professional Appraisal Practice) requires appraisers to:
- When an appraiser makes a time adjustment to a comparable sale, they are adjusting for:
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- The highest and best use of a property is defined as the use that is:
- Depreciation in appraisal refers to:
- A site that is physically and legally unsuitable for the proposed highest and best use is said to lack:
- Plottage (assemblage) refers to:
- The principle of conformity states that value is maximized when:
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