Property Valuation
Which appraisal approach is most commonly used for appraising special-purpose properties such as churches or schools?
ASales comparison approach
BIncome approach
CCost approach✓ Correct
DGross rent multiplier approach
Explanation
The cost approach is most appropriate for special-purpose properties (churches, schools, government buildings) because there are few comparable sales and no rental income to capitalize. Value is estimated as land value plus depreciated cost of improvements.
Related Arkansas Property Valuation Questions
- Which of the following is an example of a physical characteristic that an appraiser would adjust for in the sales comparison approach?
- External (economic) obsolescence differs from other forms of depreciation because it is:
- Replacement cost in the cost approach is the cost to construct:
- Which type of depreciation is caused by factors OUTSIDE the property, such as a nearby highway being constructed?
- The gross rent multiplier (GRM) is calculated by:
- The capitalization rate (cap rate) in the income approach is used to:
- When using the sales comparison approach, a 'gross living area' adjustment is made because:
- A comparable property sold for $250,000 but has a garage worth $10,000 that the subject property lacks. The adjusted value of the comparable for comparison to the subject is:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →