What methods can be used when determining value through the cost approach quizlet?
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What is the most common method used in the cost approach?Cost Approach: Land Value
Direct comparison is the most common method for estimating land value. The price of land is simply derived from recently sold plots of land.
What is the formula used to determine value using the cost approach?The formula for determining value using the cost approach is fairly simple, and is as follows: Property Value = Land Value + (Cost New - Accumulated Depreciation).
Which step is required in the cost approach to value?The basic steps of cost approach real estate evaluation include: Estimate the value of the land imagining it vacant. Estimate the current cost of constructing the building and site improvements. Estimate the amount of depreciation of the improvements.
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