Property Valuation
The cost approach to value is most useful when appraising:
ASingle-family homes in active markets
BSpecial-purpose properties like churches or schools with few sales✓ Correct
CMulti-unit residential buildings
DVacant land only
Explanation
The cost approach estimates value by calculating the replacement cost of improvements minus depreciation, plus land value. It is most reliable for special-purpose properties (churches, schools, government buildings) where few comparable sales exist.
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