Property Valuation
The cost approach to appraisal is most reliable for:
AIncome-producing properties with strong rental histories
BResidential properties in active resale markets
CSpecial-use properties with few comparable sales✓ Correct
DVacant land in urban areas
Explanation
The cost approach is most reliable for unique or special-use properties (schools, churches, government buildings) where comparable sales data is scarce and income data is inapplicable.
Related Michigan Property Valuation Questions
- External obsolescence in appraisal refers to:
- In Michigan, 'reproduction cost' in the cost approach differs from 'replacement cost' because:
- In Michigan, which appraisal approach is typically given the most weight for a single-family residential property?
- Economic obsolescence (external obsolescence) affecting a Michigan property could be caused by:
- In Michigan, an ARM's length transaction used in appraisal comparables means:
- In Michigan, depreciation in the cost approach includes all of the following EXCEPT:
- Functional obsolescence in a property refers to:
- An economic rent is best defined as:
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