70.2K

Verified Solution

Link Copied!

CoursHeroTranscribedText: The property you are asked to appraise is a ten-year-old, one-story, single-family dwelling with 1,900 square feet of living area. Given the following data, estimate reproduction cost, cost per square foot of living area, accrued depreciation, and total property value using the cost approach. Cost data Direct costs (Including labor, materials, equipment, and subcontractors' fees): $98,500 Indirect costs (including profit and overhead, architect's fees, survey, legal fees, permits, licenses, insurance, taxes, financing charges, and selling expenses): $26,500 Depreciation data Physical deterioration Curable physical deterioration (deferred maintenance): $5,250 Incurable physical deterioration-short-lived items: $12,250 Incurable physical deterioration-long-lived Items: Observed effective age (after curing physical curable and physical incurable short-lived items and curable functional obsolescence): 5 years Estimated economic life expectancy: 50 years Functional obsolescence Curable functional obsolescence; none Incurable functional obsolescence: none External obsolescence (location too close to highway, estimated by the sales comparison method): $9,000 Site value Estimated value of site by sales comparison approach: $40,000

Answer & Explanation Solved by verified expert

See Answer