Property ValuationIntermediateDelaware Exam
The cost approach to value is most useful for which type of property?
ARental apartment complexes
BSingle-family residences in active markets
CSpecial-purpose properties like churches and schoolsCorrect
DVacant land only
Why Special-purpose properties like churches and schools Is Correct
Answer C: Special-purpose properties like churches and schools
The cost approach is most reliable for special-purpose properties (churches, schools, government buildings) where no comparable sales or income data exist, and for new or recently constructed improvements.
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Related Delaware Property Valuation Questions
- What is 'external obsolescence' in a Delaware appraisal?Property Valuation
- What is 'assemblage' and 'plottage' in Delaware real estate?Property Valuation
- A Delaware commercial property has a net operating income (NOI) of $90,000 and is purchased for $1,125,000. What is the capitalization rate?Property Valuation
- Depreciation in the cost approach is defined as:Property Valuation
- Which type of depreciation in an appraisal is caused by wear and tear from use and aging of a building?Property Valuation
- An appraiser is appraising a Delaware property and finds three comparable sales. Sale 1 was 8 months ago, Sale 2 was 4 months ago, and Sale 3 was 1 month ago. Which comparable should be given the most weight?Property Valuation
- What is the 'gross rent multiplier' (GRM) method of property valuation?Property Valuation
- A property appraised using the sales comparison approach has three comparables. The appraiser adjusts each comparable. The final step is to:Property Valuation
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →