Property Valuation

A Wisconsin appraiser who uses the cost approach must estimate the value of land:

AAs zero for residential properties
BSeparately from improvements, as if vacant✓ Correct
CAs 50% of the total property value
DBased on the original purchase price

Explanation

In the cost approach, land is valued separately (as if vacant and available for its highest and best use) and is not depreciated; the improvements' depreciated replacement cost is then added.

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