Property Valuation
The cost approach to value is most reliable for:
AOlder residential properties with many comparables
BSpecial-use properties and new construction where comparables are limited✓ Correct
CIncome-producing commercial properties
DProperties sold at foreclosure
Explanation
The cost approach is most reliable for special-use or unique properties (like schools, churches) and new construction where the cost to build closely approximates market value.
Related New Mexico Property Valuation Questions
- In the income approach, 'effective gross income' is calculated as:
- An appraiser is estimating the value of a single-family home. Which approach to value would they most likely use as the primary method?
- An apartment building has an NOI of $60,000 and a cap rate of 8%. What is the estimated value?
- In New Mexico, what is the purpose of an appraisal review?
- Regression in real estate valuation means:
- In New Mexico, an appraiser who determines that a property's highest and best use is different from its current use will likely:
- An appraiser uses a 'comparable sale' to adjust for a feature the subject property has but the comparable does not. The appraiser would:
- In New Mexico, which of the following is an example of 'external (economic) obsolescence'?
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →