Property Valuation
The cost approach to value is MOST reliable for appraising:
AOlder residential properties in established neighborhoods
BIncome-producing apartment complexes
CNewly constructed special-purpose buildings✓ Correct
DVacant land only
Explanation
The cost approach is most reliable for new or special-purpose properties where there are few comparables and the cost closely represents market value.
Related Maryland Property Valuation Questions
- The principle of 'conformity' in real estate valuation states that:
- A Maryland appraiser preparing a restricted appraisal report versus a full appraisal report provides:
- Effective age in an appraisal refers to:
- The cost approach to value calculates:
- In the sales comparison approach, an appraiser makes adjustments to comparables for differences. If a comparable has a feature the subject does NOT have, the adjustment to the comparable is:
- In the income approach, effective gross income (EGI) is calculated as:
- The effective age of a Maryland building refers to:
- In Maryland, a property's 'highest and best use' is the use that is:
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