Property Valuation
When appraising a unique property in Missouri with no comparable sales, an appraiser would most likely rely on the:
ASales comparison approach
BCost approach✓ Correct
CIncome approach
DGross rent multiplier method
Explanation
The cost approach is most useful when comparable sales are unavailable (unique properties, special-use buildings). It estimates value by calculating land value plus depreciated replacement/reproduction cost of improvements.
Related Missouri Property Valuation Questions
- The principle of 'substitution' in real estate appraisal states that:
- In Missouri appraisal, an adjustment is made to a comparable sale for a feature the subject property lacks. This adjustment is:
- A Missouri appraiser making a time adjustment uses a market conditions analysis. In a rapidly appreciating Missouri market, older comparable sales would be adjusted:
- In Missouri, a 'cap rate compression' (declining cap rates) typically indicates:
- In Missouri, a property owner who disagrees with their tax assessment may appeal to the:
- A Missouri appraiser uses a cost approach on a 20-year-old home with an economic life of 50 years. The percentage depreciation using age-life method is:
- The gross income multiplier (GIM) approach values a Missouri property by:
- A Missouri property is over-improved when:
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