Property Valuation
The cost approach to value is most reliable when:
AThere are many comparable sales in the market
BValuing unique, special-use, or new properties with few comparables✓ Correct
CEstimating the value of income-producing apartments
DDetermining market rent for commercial space
Explanation
The cost approach — land value plus cost to reproduce improvements minus depreciation — is most useful for special-use properties (churches, schools), new construction, or properties with few comparable sales.
Related Nebraska Property Valuation Questions
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