Which is not normally considered when conducting an appraisal using the cost approach?

Question

Quizplus · Accepted Answer

The cost approach focuses on determining the cost of replacing the property with a similar one. It takes into account the cost of land, construction or replacement cost, and depreciation. Functional obsolescence and effective age are forms of depreciation that can affect the value of the property. However, the capitalization rate is a concept used in the income approach, which estimates the value of the property based on its potential income. Therefore, it is not normally considered in the cost approach.

Which Is Not Normally Considered When Conducting an Appraisal Using