Property Valuation
The cost approach to value is most useful for appraising:
AIncome-producing retail centers
BSpecial-use properties with no comparable sales (e.g., schools, churches)✓ Correct
CResidential properties in active markets
DAgricultural land
Explanation
The cost approach is particularly useful for special-use properties (churches, schools, government buildings) where there are few comparable sales and no income stream to capitalize.
Related Massachusetts Property Valuation Questions
- The term 'highest and best use' in appraisal means the use that is:
- An appraiser finds that a comparable home sold for $420,000. It has a garage worth $15,000 that the subject property lacks, and the comparable's lot is $10,000 smaller than the subject's. What is the adjusted sale price?
- An appraiser uses the 'reconciliation' process at the end of an appraisal to:
- In Massachusetts, a property's assessed value is meant to reflect:
- The principle of conformity states that property values are maximized when:
- Functional obsolescence in a property refers to:
- What is functional obsolescence in a Massachusetts property?
- The cost approach to value is most reliable for which Massachusetts property?
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