Property Valuation
The cost approach to value is most reliable when:
AThe property is an older home with many comparables
BThe property is a new building or unique structure with few comparables✓ Correct
CThe property generates rental income
DThe property is located in a declining market
Explanation
The cost approach is most reliable for new or special-purpose properties where comparable sales are scarce, as the cost to replace the structure can be reasonably estimated.
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