Part 8 Intro to the Cost Approach Flashcards
________ is the actual or estimated amount required to create, reproduce, replace or obtain a property
Cost
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8- step Process for the cost approach
1 Estimate ________ value as though vacant
2 Estimate direct and ________ costs
3 Estimate _______________ incentive
4 Add steps 2 and 3 together
5 Estimate depreciation from ___ sources
6 Deduct depreciation from cost
7 Add __-__ value of any site improvements
8 Add site value to depreciated costs
1 Site
2 Indirect
3 Entrepreneurial
5 Three
7 As-is
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Reproduction is an ________ ________ of the current improvements
Exact replica
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Replacement cost is ___________ in _________ to the current improvements
Equivalent in utility
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_________ costs are the hard costs such as labor and material
Direct
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_________ costs are the soft cost expenditures that are necessary but not typically part of the construction contract such as appraisal, building permits, architect fees, accounting…
Indirect
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Entrepreneurial ______________ is a market- derived figure that represents the amount an entrepreneur expects to receive for providing his expertise
Whereas
Entrepreneurial _________ is a market-derived historical figure that represents the amount an entrepreneur receives for their contribution to a project
Incentive
Profit
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The most commonly used cost-estimating method is the ____________-________ method
Comparative-unit method
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The comparative-unit method is usually expressed in terms of cost per ________ ______
Square foot
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In the _______-___ place method, the total building cost is estimated by adding together the unit costs for the various building components as installed. E.g. the roof, walls, foundation, excavation
Unit-in place
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The 3 cost-estimating methods are
1) ___________-unit method
2) ________-___ place method
3) Quantity ________ method
1) Comparative
2) Unit-in
3) survey
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This cost-estimating method is the most comprehensive and time consuming method of the 3 cost-estimating methods
Quantity survey method
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In a townhome, the exterior measurement is taken from the center of the ________ wall
Party
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Condominium measurements are based on the _________ dimensions
Interior
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To be included in GLA, what must be the height of the ceiling, and what must be the height of any pony walls?
7’ and 5’
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