1. Which Market Principle does the Cost Approach adhere to most closely? What are the three stages required by the Value based on Cost Approach formula?

2. Definition of terms: Physical Deterioration, Functional obsolescence, and External (Economic) obsolescence?

3. Why is it vital to calculate Accrued depreciation when utilizing the Cost Approach to Value to determine Market Value?

4. What factors define a Competitive (Comparable) Property using the Sales Comparison Approach? Which types of property sales may not be included if they are not considered Competitive? 5. Included in the Sales Comparison Approach is the appraiser's obligation to make changes in value. Explain the adjustment procedure for a Comparable property when it is inferior to the Subject Property as well as when it is better. Using the Paired Data Analysis, how is it appraisers calculate the appropriate correction values?

Answer rating: 100% (QA)

1 The Cost Approach primarily adheres to the principle of substitution This principle states that a rational buyer would not pay more for a property t... View the full answer