Which of the following aspects would an appraiser still consider when performing a replacement cost analysis? A) capitalization of income B) depreciation C) land value D) comparabl... Which of the following aspects would an appraiser still consider when performing a replacement cost analysis? A) capitalization of income B) depreciation C) land value D) comparable sales approach
Understand the Problem
The question is asking about the aspects that an appraiser would consider in a replacement cost analysis. It emphasizes the different factors that contribute to determining the replacement cost of a property.
Answer
Depreciation.
The appraiser would consider depreciation when performing a replacement cost analysis.
Answer for screen readers
The appraiser would consider depreciation when performing a replacement cost analysis.
More Information
In a replacement cost analysis, the cost approach to property valuation is often used, which considers the cost of constructing a new building with the same utility as the subject property. This approach takes into account depreciation to determine the current value of improvements.
Tips
A common mistake is to consider capitalization of income and comparable sales approach as these are different valuation methods.
Sources
- 2024 MASS APPRAISAL SUMMARY REPORT - Garza CAD - garzacad.org
- What You Should Know About Real Estate Valuation - Investopedia - investopedia.com
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