Property Valuation
Which of the following properties would MOST benefit from the cost approach in appraisal?
AA 30-year-old single-family home in an established neighborhood
BA newly constructed special-purpose building such as a hospital✓ Correct
CAn apartment complex with 20 units
DA commercial strip center in a major retail corridor
Explanation
The cost approach is most reliable for new or nearly new special-purpose properties (hospitals, schools, churches) where comparable sales are rare and the depreciation estimate is straightforward.
Related Arkansas Property Valuation Questions
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