Property Valuation
Which of the following properties would most likely be appraised using the cost approach as the primary method?
AA suburban single-family home
BA new special-purpose building with limited comparable sales✓ Correct
CA 20-unit apartment complex
DA retail strip center
Explanation
The cost approach is most useful for special-purpose or unique properties that lack sufficient comparable sales, such as churches, schools, or new construction.
Related Alabama Property Valuation Questions
- The principle of 'regression' in real estate value states that:
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- Which type of depreciation is caused by factors outside the property, such as a nearby industrial facility?
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- Which organization sets minimum qualification standards for state-certified and licensed real estate appraisers?
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