Property Valuation
An Iowa appraiser would use the cost approach as the primary valuation method for:
AAn income-producing strip mall
BA newly constructed school or municipal building with no comparable sales✓ Correct
CA 50-year-old single-family residence in Des Moines
DVacant farmland with active cash rent leases
Explanation
The cost approach is most useful for special-use properties (schools, churches, government buildings) where comparable sales and income data are not available. It is also used for new construction and insurance purposes.
Related Iowa Property Valuation Questions
- An Iowa appraiser is comparing three buildings using the cost approach. The reproduction cost differs from replacement cost in that:
- When using the sales comparison approach, an appraiser makes adjustments to comparable sales prices because:
- An Iowa appraiser is reconciling the three approaches to value. She assigns greatest weight to the sales comparison approach. This is appropriate when:
- An appraiser values a single-family home in Iowa using the sales comparison approach. The subject has a two-car garage; one comparable sold with a one-car garage for $215,000. If the garage difference is worth $5,000, the adjusted comparable value is:
- In Iowa, the gross rent multiplier (GRM) for a rental home is calculated as:
- An Iowa appraiser finds that adding a second bathroom to a home increases its value by $8,000 but costs $15,000 to construct. This is an example of:
- Iowa county assessors re-assess all property at least every how many years?
- Depreciation in real estate appraisal means:
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