Property Valuation
In South Dakota, which of the following properties would typically be appraised using the cost approach as the primary method?
AA single-family home in a neighborhood with many recent sales
BA special-use property such as a school, church, or government building✓ Correct
CA small residential income property with comparable rentals
DAn undeveloped vacant lot
Explanation
The cost approach is most applicable when there are no comparable sales (unique or special-use properties like schools, churches, or government buildings) or when the property is newly constructed. It estimates value by calculating land value plus depreciated cost of improvements.
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