Property Valuation
Which approach to value would be MOST appropriate for a new fire station being built in a Vermont town?
ASales comparison approach
BCost approach, since no comparable sales exist for fire stations and they generate no income✓ Correct
CIncome approach based on lease rates
DAssessment value from the grand list
Explanation
Special-purpose public buildings like fire stations have very few comparable sales and generate no income. The cost approach — estimating land value plus replacement cost of the improvements less accrued depreciation — is the most applicable approach for such special-use properties.
Related Vermont Property Valuation Questions
- Vermont's 'bulk discount' principle in appraisal means that:
- When an appraiser makes an upward adjustment for a comparable sale that lacks a garage that the subject property has, this reflects:
- Vermont's Stowe/Killington area's 'luxury market' appraisal challenges include:
- In Vermont's Killington ski market, seasonal demand means that comparable sales for a ski chalet should ideally be:
- Vermont's 'interim use' in highest and best use analysis refers to:
- Functional obsolescence in a Vermont property is best described as:
- Vermont's equalization ratio in property taxation is used to:
- Vermont's 'tax assessed value' is useful in appraisal as:
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →