Property Valuation
In Vermont appraisal, the cost approach is MOST reliable for valuing:
AOlder residential homes in established neighborhoods
BNew or nearly new special-purpose properties with few comparable sales✓ Correct
CIncome-producing apartment buildings
DVacant land parcels
Explanation
The cost approach — which estimates land value plus the depreciated replacement cost of improvements — is most reliable for new construction and special-purpose properties (schools, churches, fire stations) where comparable sales and income data are limited.
Related Vermont Property Valuation Questions
- Regression in Vermont real estate appraisal means that:
- Vermont's 'paired sales analysis' in appraisal is used to:
- Vermont appraisers who specialize in appraising agricultural land must understand which Vermont program that significantly affects land use and value?
- A Vermont appraiser determines that the comparable sale at $350,000 had a 2-car garage while the subject property has no garage. The appraiser adjusts the comparable by:
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