Property Valuation
The cost approach to appraisal is most reliable for:
AIncome-producing properties in dense urban markets
BNew construction or unique special-purpose properties✓ Correct
CSingle-family homes with many comparable sales
DVacant land parcels only
Explanation
The cost approach is most reliable for new construction (where depreciation is minimal) and special-purpose properties (like schools or churches) where comparable sales are rarely available.
Related Nebraska Property Valuation Questions
- A Nebraska appraiser identifies an external obsolescence affecting a residential property near a newly constructed highway. External obsolescence is:
- External (economic) obsolescence is a form of depreciation caused by:
- A Nebraska appraiser uses the economic age-life method to estimate depreciation. The building cost new was $400,000. Effective age is 15 years; economic life is 60 years. Depreciation is:
- An appraiser working on a Nebraska subdivision notes that smaller homes near the subdivision entrance sell for more per square foot than larger homes at the back. This illustrates the principle of:
- An appraisal is defined as:
- An appraisal that uses only one approach (e.g., sales comparison) without considering others may be:
- Nebraska's property tax appeal process allows property owners who believe their assessed value is too high to:
- A Nebraska appraiser reconciles three approaches: Sales Comparison = $285,000; Cost = $290,000; Income = $278,000. For a single-family home, the appraiser will give MOST weight to:
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