Property Valuation
The cost approach to value is most reliable for:
AOlder residential properties with significant depreciation
BUnique or special-purpose properties with few comparables✓ Correct
CIncome-producing properties
DProperties in highly active resale markets
Explanation
The cost approach is most reliable for new construction, special-purpose properties (schools, churches, government buildings), or properties where market data and income data are limited.
Related Georgia Property Valuation Questions
- A Uniform Standards of Professional Appraisal Practice (USPAP) is important because it:
- The income capitalization approach to value assumes that value is:
- A 'drive-by' appraisal (exterior-only inspection) is:
- The sales comparison approach to value is most appropriate for:
- An appraisal report that is 'self-contained' (now called an appraisal report under current USPAP) contains:
- An appraiser makes a final value conclusion by reconciling the three approaches. This process is called:
- The income approach uses a 'direct capitalization' method when:
- A Georgia property has an annual NOI of $54,000 and a capitalization rate of 6%. What is the estimated value?
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