Property Valuation
The cost approach to value is MOST appropriate for:
ASingle-family homes in active markets
BSpecial-use properties with few comparables, like schools or churches✓ Correct
CCommercial retail centers
DVacant land
Explanation
The cost approach is most useful for special-use or unique properties with limited sales comparables, such as schools, churches, or government buildings, because it values the property based on replacement cost less depreciation.
Related Arizona Property Valuation Questions
- When an appraiser adjusts a comparable sale upward by $5,000 for a feature the subject has but the comparable lacks, the adjustment means:
- Plottage (assemblage) value in Arizona real estate refers to:
- A property in Arizona has a gross rent multiplier (GRM) of 120 and rents for $1,800 per month. What is the estimated value using the GRM method?
- An Arizona appraiser finds a comparable sale has one extra bathroom compared to the subject property. The appraiser would:
- Accrued depreciation in the cost approach refers to:
- Economic life of a building in the cost approach refers to:
- In Arizona, a property appraiser finds that the subject property has a 3-car garage while all comparables have 2-car garages. If the market shows a 2-car garage adds $8,000 in value over a 1-car, the appraiser would make:
- Which of the following best describes 'market value' in Arizona real estate?
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →