The cost approach in real estate estimates property value by calculating the cost to rebuild minus depreciation plus land value. Learn the formula, when it applies, and what to expect on the real estate license exam.
Functional obsolescence in real estate is a loss in property value due to outdated design, layout, or features. Learn curable vs incurable types, common examples, and what to expect on the real estate license exam.
The gross rent multiplier (GRM) estimates property value by dividing sale price by gross rental income. Learn the GRM formula, when to use it, and what to expect on the real estate license exam.
Market value is what a property would sell for on the open market, while assessed value determines property taxes. Learn the key differences and what to expect on the real estate license exam.