Cost Approach Appraisal
An investor would like your help in determining the fair market value of a unique property. This property built in 1922 and rehabbed in 2011 is one acre in size ($500,000 per acre) and has a solid brick and steel structure throughout the building. The building is 10 stories high and has a base frame that is 25,000 sqft. The cost to replace each floor is $125 per sqft. The building while in good condition from the rehab does need repairs of two windows ($3,000 each), one hvac system ($75,000) and the parking lot needs a new seal coat on the pavement ($20,000). Please provide the best estimate of the value of the property that is currently vacant.