Property Valuation
The cost approach is MOST reliable for which type of property?
A40-year-old apartment complex with extensive deferred maintenance
BNewly constructed special-use property with few market comparables✓ Correct
CA downtown commercial property with active market transactions
DA residential rental property with consistent rent rolls
Explanation
The cost approach is most reliable for newly constructed properties (minimal depreciation to estimate) and special-use or unique properties where few sales comparables exist (churches, schools, government buildings). It is less reliable for older properties where estimating accrued depreciation introduces significant subjectivity.
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