Property Valuation
In North Dakota, the 'cost approach' is particularly useful for valuing:
AInvestment properties where income is the primary value driver
BSpecial-purpose properties and new construction where comparable sales are limited✓ Correct
CVacant land only
DProperties that are at least 50 years old
Explanation
The cost approach is most reliable for special-purpose properties (churches, schools, government buildings) with few comparable sales, and for new construction where depreciation is minimal. It can also provide a check on value for standard properties where sales and income data support other approaches.
Related North Dakota Property Valuation Questions
- Which North Dakota principle states that value is influenced by the returns expected from surrounding properties?
- A North Dakota property appraiser's opinion differs from the purchase price by 15%. The appraiser should:
- In North Dakota, a property with a low cap rate compared to the market suggests the property is:
- Which factor would most likely increase the value of residential property in Grand Forks, North Dakota?
- In North Dakota, the assessed value of property for taxation purposes is typically a percentage of:
- An appraiser in North Dakota values a Fargo warehouse using the income approach. The building generates $180,000 NOI and comparable cap rates are 8%. The indicated value is:
- An appraiser must remain 'independent' of the transaction, meaning:
- What does 'as-is' value mean in a North Dakota appraisal?
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