Property Valuation
The cost approach to value is most reliable for which Massachusetts property?
AA 100-year-old Victorian mansion with extensive renovation
BA newly built school or special-purpose building✓ Correct
CA downtown Boston commercial office building
DA multi-family property in Springfield
Explanation
The cost approach is most reliable for special-purpose or unique properties (schools, churches, government buildings) where few comparable sales exist and the income approach may not apply.
Related Massachusetts Property Valuation Questions
- The GRM (Gross Rent Multiplier) for a Massachusetts rental property sold for $480,000 with monthly rent of $3,200 is:
- External obsolescence in a Massachusetts property appraisal is caused by:
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- An appraiser uses three comparable sales to estimate the value of a subject property. The adjusted values of the comparables are $415,000, $422,000, and $418,000. Which value should the appraiser most likely assign?
- In Massachusetts, a property's assessed value is meant to reflect:
- Economic obsolescence (external obsolescence) is caused by:
- In Massachusetts, a licensed appraiser performing an appraisal for a federally related transaction must be certified under:
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