Property Valuation
The cost approach to value is MOST reliable when valuing:
AOlder residential properties with significant deferred maintenance
BNew or recently constructed special-use properties✓ Correct
CIncome-producing apartment complexes
DVacant land parcels
Explanation
The cost approach is most reliable for new or recently constructed properties and special-use buildings (churches, schools, government buildings) where there are few comparable sales.
Related Maine Property Valuation Questions
- A Maine appraiser notes that houses in a neighborhood are declining in value due to an increase in commercial development nearby. This is an example of:
- Maine's 'Tree Growth Tax Law' affects appraisal because land enrolled in the program:
- The sales comparison approach to value is MOST appropriate for appraising:
- A Maine appraiser uses the '1004 form' (Uniform Residential Appraisal Report). This form is used for:
- A Maine appraiser is asked to provide a 'retrospective appraisal' (appraising as of a past date). This may be needed for:
- A Maine appraiser making an income approach to value uses a 'vacancy and collection loss' factor to:
- Seasonal and vacation properties in Maine are typically valued using which primary approach?
- A Maine appraiser making adjustments to comparable sales adjusts:
Practice More Maine Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maine Quiz →