You are asked to estimate the market value of Ms Mini's house, which has two floors. The first floor isrectangular, 35 feet wide and 45 feet deep. The area of thesecond floor is about 70% of that of the first floor. The lot size is 45 feet by 100 feet. The lots in the area sell for $6,000 per front foot. The present construction cost for this type and quality of house is $160 per square foot. A personal inspection of the house reveals the following information: 

The house needs external painting that will cost $2,000. 

(ii) The house needs minor roof repair that will cost $1,000. 

"iii) A recent flooding in the basement has caused a damage of $1,500. 

(iv) A storm door has to be replaced at a cost of $1,300. 

(v) Fireplace costs $5,000. E Tthe broadloom of the master bedroom has to be replaced at a cost of $1.800. There is no other observable depreciation. 

Required: What is the value of Ms Mini's house by the Cost Approach?

Answer rating: 100% (QA)

To estimate the market value of Ms Minis house using the Cost Approach we need to calculate the tota... View the full answer