Property Valuation
In Alaska, the cost approach to value is MOST useful for appraising:
AOlder residential properties in established neighborhoods
BIncome-producing commercial properties
CSpecial-use properties with few market comparables✓ Correct
DVacant land parcels
Explanation
The cost approach is most reliable for special-use or unique properties — such as churches, schools, or government buildings — where there are few or no comparable sales. It estimates value based on land value plus depreciated cost to reproduce or replace the improvements.
Related Alaska Property Valuation Questions
- The capitalization rate (cap rate) is calculated as:
- In Alaska, the 'economic life' of a building refers to:
- When a licensed appraiser estimates the value of a property, the appraiser is providing an opinion of:
- The principle of substitution in appraisal holds that:
- Permafrost thaw beneath a building in Alaska is an example of which type of depreciation in an appraisal?
- In Alaska, functional obsolescence in a property could be caused by:
- When appraising a remote Alaska property accessible only by floatplane, an appraiser should:
- The appraisal principle of 'progression' suggests that:
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