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.

Answer 1

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