Property Valuation
The cost approach to appraisal is MOST applicable when:
AAppraising a 30-year-old apartment complex
BValuing a special-use property like a church or school with few comparable sales✓ Correct
CDetermining the rent for a commercial property
DCalculating the income potential of a shopping center
Explanation
The cost approach is most useful for special-use properties (churches, schools, government buildings, etc.) that have few comparable sales and are not typically income-producing. It estimates value as the cost to reconstruct the improvements, less depreciation, plus land value.
Related Oregon Property Valuation Questions
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