Property Valuation

When appraising a newly constructed building with no prior sales history, the appraiser would most heavily rely on the:

ASales comparison approach
BIncome approach
CCost approach✓ Correct
DGross rent multiplier approach

Explanation

For newly constructed buildings with no prior sales history, the cost approach is most reliable because it directly reflects the cost to construct the improvements, and depreciation is minimal. The cost approach formula (land value + improvement cost − depreciation) works best when the improvements are new and there are few comparable sales.

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