Property Valuation
A South Dakota ranch property sells for $1.8 million. It consists of 1,500 acres of rangeland and a house/outbuildings complex. How would a commercial ranch appraiser most likely approach this valuation?
ACost approach only for the buildings
BA combination of sales comparison for land and cost approach for improvements✓ Correct
CIncome approach only
DGross rent multiplier approach
Explanation
Ranch appraisals typically use the sales comparison approach for land value (comparing price per acre) and cost approach for improvements (house, barn, outbuildings), then reconcile to a total value.
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