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2 July, 22:37

A property is being appraised by the Cost Approach. The appraiser estimates that the land is worth $33,000 and the replacement cost of the home is $110,000. A new $20,000 garage was recently added. Total depreciation from all causes is $7,000. What is the indicated value of the property?

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  1. 3 July, 01:39
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    Answer: The value of the property is $156000.

    Explanation: The value according to the cost approach is given by

    (The estimated value of the land + The replacement cost of the house + additional improvements) - (Depreciation).

    Therefore the calculation is:

    (33000 + 110000 + 20000) - (7000) = $ 156000.
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