Property Valuation
A special-purpose property in Mississippi (e.g., a church or school) is most often appraised using the:
ASales comparison approach
BIncome approach
CCost approach✓ Correct
DGross rent multiplier
Explanation
Special-purpose properties have limited comparables and no income stream to capitalize. The cost approach (land value + replacement cost of improvements − depreciation) is typically the most appropriate method.
Related Mississippi Property Valuation Questions
- In the sales comparison approach, an adjustment is made to the comparable sale, not to the subject property. If a comparable sold for $200,000 and has a pool worth $15,000 that the subject lacks, the appraiser:
- A Mississippi appraiser is valuing a new custom home in a flood zone near the Gulf Coast. The cost approach would include all of the following EXCEPT:
- A Mississippi appraiser identifies a comparable sale that was a 'distressed sale' (foreclosure or short sale). This comparable requires:
- Assessed value in Mississippi is determined by:
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- A Mississippi appraiser is asked to provide a 'desktop appraisal' (without a physical interior inspection). Under current guidelines, desktop appraisals:
- Depreciation in the cost approach refers to:
- A Mississippi appraiser adjusts a comparable sale that had a swimming pool when the subject property does not. The appraiser would make a:
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