Property Valuation

Which of the following South Carolina properties would most likely use the cost approach as the primary valuation method?

AA 10-unit apartment building
BA newly constructed custom home with no comparable sales✓ Correct
CA retail strip center
DA single-family home in an established subdivision

Explanation

The cost approach is most reliable for new or unique properties where comparables are scarce. A newly constructed custom home with no comparable sales is a prime candidate for the cost approach.

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