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please find reproduction cost (not replacement cost) as well as accrued depreciation The property you are asked to appraise is a ten-year-olds one-story, single-famly dwelling
please find reproduction cost (not replacement cost) as well as accrued depreciation
The property you are asked to appraise is a ten-year-olds one-story, single-famly dwelling with 1,900 square feet of living area Given the following data, estimate reproduction cost, post 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 deterloration-short-lived items: $12,250 "Incurable physical deteriorationlong-lived items! Observed effective age (after curing physical curable and physical inourable short-lived items and curable functional obsolescence): 5 years Estimated economic Ilfe 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 Step by Step Solution
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