Property Valuation
In Alaska, the cost approach to value is MOST useful when appraising:
AA 50-year-old rental apartment complex
BA special-use property like a school or church with few comparables✓ Correct
CA single-family home in a neighborhood with many recent sales
DUndeveloped commercial land
Explanation
The cost approach is most useful when comparable sales are scarce — as is the case for special-use properties (churches, schools, government buildings) and new construction.
Related Alaska Property Valuation Questions
- An appraiser in Alaska determines a comparable property sold in an estate sale at 10% below market value. To use this comparable, the appraiser should make:
- The 'land-to-value ratio' in an appraisal is significant because it:
- An Alaska appraiser who makes a 'negative 5% condition adjustment' to a comparable means:
- In Alaska, an appraiser who is reviewing the appraisal work of another appraiser provides a(n):
- In Alaska, the 'capitalization rate' is affected primarily by:
- In Alaska, an appraiser who inflates an appraisal at the lender's request to make a purchase transaction work is committing:
- In Alaska, a 'development approach' (also called 'developer's profit' analysis) to land valuation is used primarily when:
- An Alaska commercial property has a potential gross income of $200,000, vacancy rate of 5%, and operating expense ratio of 45% of EGI. The NOI is:
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