Using the given information to estimate the property value through Cost Approach
ID: 2657168 • Letter: U
Question
Using the given information to estimate the property value through Cost Approach
Cost Approach
Reproduction Costs
Assumptions
House
• Living area:2960 sf
Garage
• Living area, estimated cost of reproduction: $62.00 / sf
Appliances
• Garage, estimated cost of reproduction: $8,800
Total Reproduction
• Appliances, estimated cost of reproduction: $2,400
Depreciation
• Physical depreciation: 5% of total improvement costs
Depreciated Cost of Building
• Functional obsolescence: None
Site Value
• External obsolescence: None
Misc Site Improvements
• Site value, estimated: $40,000
Total Value
• Landscaping and other miscellaneous site improvements,
current value: $4,000.
Cost Approach
Reproduction Costs
Assumptions
House
• Living area:2960 sf
Garage
• Living area, estimated cost of reproduction: $62.00 / sf
Appliances
• Garage, estimated cost of reproduction: $8,800
Total Reproduction
• Appliances, estimated cost of reproduction: $2,400
Depreciation
• Physical depreciation: 5% of total improvement costs
Depreciated Cost of Building
• Functional obsolescence: None
Site Value
• External obsolescence: None
Misc Site Improvements
• Site value, estimated: $40,000
Total Value
• Landscaping and other miscellaneous site improvements,
current value: $4,000.
Explanation / Answer
Reproduction Costs House 1,83,520 =2960*62 Garage 8,800 Appliances 2,400 Total Reproduction 1,94,720 =183520+8800+2400 Depreciation 9,736 =5% * 194720 Depreciated Cost of Building 1,84,984 =194720 - 9736 Site Value 40,000 Misc Site Improvements 4,000 Total Value 2,28,984 =184984+40000+4000
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