Property Valuation
In Vermont, which of the following properties would the cost approach be LEAST reliable for valuing?
AA newly constructed custom home
BA 150-year-old Victorian farmhouse with significant deferred maintenance✓ Correct
CA new commercial warehouse
DA recently built school
Explanation
The cost approach is least reliable for older properties where estimating accrued depreciation (physical, functional, and external) is highly subjective and uncertain. A 150-year-old Vermont Victorian farmhouse with deferred maintenance would have extensive, difficult-to-quantify depreciation.
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