Cost Approach Flashcards
1
Q
What is cost approach?
A
Process of estimating the value of a property by adding to the estimated land value the appraiser’s estimate of the replacement cost of the building, less depreciation.
2
Q
What is the replacement cost improvements?
A
Cost to replace an improvement with another improvement having the same utility.
3
Q
What are the methods for estimating the cost of construction?
A
Unit-in-place method, Unit-in place calculates the added cost of single units installed; square footage method, square footage method utilizes exterior dimensions to calculate the cost per square foot quantity survey method, quantity survey calculates the cost of labor and materials to construct each component of a building, it is very accurate but time consuming.
