Question

An appraiser used the cost approach to estimate a property’s value at $220,000. The site value was $50,000, and the total depreciation estimate was $4,000. What was the estimated cost of improvements?

Answer 1

$174,000

Step-by-step explanation:

Calculation for the estimated cost of improvements

Using this formula

Estimated cost= Property’s value -Site value + Total depreciation

Let plug in the formula

Estimated cost=$220,000-$50,000+$4,000

Estimated cost=$174,000

Therefore the Estimated cost of improvements will be $174,000