Property Valuation
The cost approach to value in Kentucky would be most appropriate for:
AA 100-year-old historic property in Bardstown
BA newly constructed special-purpose building such as a school✓ Correct
CAn apartment complex with stable rental income
DA retail strip center
Explanation
The cost approach is most appropriate for special-purpose properties (churches, schools, government buildings) where comparable sales data is limited and income-producing use is not the primary purpose.
Related Kentucky Property Valuation Questions
- The gross rent multiplier (GRM) is calculated by:
- A Kentucky property with 100 feet of frontage on a main commercial road and 200 feet of depth is being valued. The appraiser applies a 'plottage' adjustment because:
- A Kentucky appraiser values land separately from improvements because:
- A Kentucky property has a monthly rent of $2,000 and the sale price is $264,000. What is the monthly gross rent multiplier (MGRM)?
- The principle of substitution holds that:
- In the income approach, capitalization rate (cap rate) is determined by:
- Regression in property valuation means:
- Plottage in Kentucky real estate means:
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