Property Valuation
In Florida, which type of property would most benefit from the 'cost approach' to valuation?
AA 30-year-old single-family home in an established neighborhood
BA newly constructed special-purpose facility like a fire station or school✓ Correct
CAn office building in downtown Miami
DA vacant commercial lot
Explanation
The cost approach is most reliable for new construction (where cost approximates value) and special-purpose properties (fire stations, schools, churches) where no comparable sales exist and the income approach is not applicable.
Related Florida Property Valuation Questions
- In a buyer's market in Florida, which of the following is most likely TRUE?
- A Florida appraiser notes that the 'absorption rate' for single-family homes in a neighborhood is 6 months. This means:
- A Florida appraiser performing an appraisal for estate tax purposes uses which value standard?
- In a Florida appraisal, 'land residual technique' is used to:
- An appraiser's 'opinion of value' is based on:
- A Florida commercial property has a potential gross income of $200,000. After applying a 6% vacancy and collection loss, the effective gross income is:
- In Florida, which type of appraisal report provides the most comprehensive documentation of the appraiser's analysis?
- In the cost approach, the formula is: Value = Land Value + Depreciated Cost of Improvements. If a property has a land value of $95,000, replacement cost new of $320,000, and total accrued depreciation of 25%, the indicated value is:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →