1)Note that this math based question is many points so take your time on it to make sure your answers are right.
Use the following information to estimate the market value of a property using the cost approach:
1) Typical lot value in the neighborhood: $80,000
2) Replacement Cost New: $300,000
3) The building is 20 years old with an expected life span of 100 years but is highly updated/renovated with an effective age estimate of 5 years.
4) The lot also has a patio, retaining walls and shed estimated to be worth $6000
Show your work with the answers to get partial points in case your answer is wrong but your approaches were correct:
A) What is the Depreciation of the building both in % terms and in $ terms
B) What is the Depreciated Structural replacement Value of the Property?
C) What is the Market Value of the Property Based on the Cost Approa
