Property Valuation (alternative)
In Maryland, the cost approach is MOST useful when appraising:
AIncome-producing apartment buildings
BResidential properties with many comparable sales
CSpecial-use properties and new construction✓ Correct
DVacant land only
Explanation
The cost approach is most useful for special-use properties (schools, churches) where comparable sales are scarce, and for new construction where physical depreciation is minimal.
Related Maryland Property Valuation (alternative) Questions
- An appraiser in Maryland who is asked to use a specific comparable by the lender should:
- For a Maryland property near the Washington DC suburbs with high demand, a 'market rent' analysis would use:
- A Maryland appraiser preparing a residential appraisal for a federally regulated transaction must complete a report on a form approved by:
- In Maryland, the difference between market value and investment value is that:
- When comparing sales in the same Maryland neighborhood, an appraiser should give the most weight to comparables that are:
- The 'price per square foot' metric in Maryland real estate analysis is a:
- A Maryland appraiser who uses three comparable sales with adjusted values of $380,000, $385,000, and $390,000 should reconcile to a value:
- The 'economic rent' of a property exceeds the 'contract rent' when:
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