Property Valuation
The cost approach is most reliable for appraising:
AOlder residential homes with significant depreciation
BNew or recently constructed special-purpose buildings✓ Correct
CIncome-producing apartment complexes
DVacant land only
Explanation
The cost approach is most reliable for newer properties where depreciation is minimal, and for special-purpose or unique properties that lack market comparables — churches, schools, fire stations. For these properties, the cost to reproduce or replace provides a reliable value indicator.
Related Pennsylvania Property Valuation Questions
- An appraiser inspecting a Philadelphia brownstone notes evidence of a previous fire that was repaired. This represents which type of depreciation?
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- Reconciliation in a Pennsylvania appraisal refers to:
- A Pennsylvania appraiser's assignment conditions for a retrospective appraisal (historical date of value) would use market data from:
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- A Pennsylvania appraiser must retain a copy of completed appraisal reports for at least:
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