easy · National Real Estate Exam valuation
An appraiser estimates what it would cost to rebuild a house today, then subtracts value lost to wear and age.
Which valuation approach is being used?
- The sales comparison approach, which relies on recent sales of similar homes.
- The income approach, which relies on the property's rental income.
- The cost approach, replacement cost minus depreciation, plus land value.
- The gross rent multiplier approach, which relies on a rent-to-price ratio.
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