Question

The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________

Answer 1

cost approach

Step-by-step explanation:

Based on the information provided within the question it can be said that the method being described in the question is called the cost approach. This is a basic valuation method that concludes that the buyer should pay a price for a piece of property that equals the same price that it would cost to build a similar property. Therefore equating the price to the cost of the land + cost of construction - depreciation.