Property Valuation
The cost approach to value is most reliable when appraising:
AOlder residential properties with many comparables
BNew or special-purpose properties with few comparable sales✓ Correct
CIncome-producing commercial buildings
DVacant land in an urban area
Explanation
The cost approach is most reliable for new construction and special-use properties (churches, schools, hospitals) that rarely sell and have few comparables. It is less reliable for older properties with significant depreciation.
Related New Hampshire Property Valuation Questions
- In NH, the assessed value for property tax purposes may differ significantly from market value because:
- The concept of 'functional utility' in NH appraisal refers to:
- A NH appraiser notes that a property's neighborhood is in the 'decline' phase of the neighborhood life cycle. This typically means:
- For a NH two-family home (duplex), a buyer-appraiser would likely give greatest weight to the:
- A NH appraiser who discovers the property has unpermitted additions should:
- Net operating income (NOI) for an investment property is calculated as:
- The 'principle of change' in NH real estate appraisal recognizes that:
- External (economic) obsolescence in real estate valuation is caused by:
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