Florida Real Estate Exam Prep 41, Sales Comparison and Cost Approaches

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- The crucial rule of adjusting the comparable property, not the subject, using the 'CBS, CIA' mnemonic (Comparable Better Subtract, Comparable Inferior Add).

- The distinct difference between Reproduction Cost (an exact replica) and Replacement Cost (the same utility with modern materials).

- How to identify the three types of depreciation: physical deterioration, functional obsolescence, and external obsolescence.

- Why external obsolescence is always considered incurable from the property owner's perspective, a common exam scenario.

- The cost approach formula and the fundamental principle that land value is added at the end and is never depreciated.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep