Property Valuation
In West Virginia, which appraisal approach is most appropriate for a new school building?
AIncome approach
BSales comparison approach
CCost approach✓ Correct
DGross rent multiplier approach
Explanation
The cost approach is most appropriate for special-purpose properties (schools, churches, government buildings) that rarely sell and have no rental income. The cost approach estimates value as the cost to reproduce or replace the improvements plus land value.
Related West Virginia Property Valuation Questions
- A West Virginia appraiser asked to determine the value of a partial interest in a property (such as a 50% tenancy in common interest) would typically find:
- An appraiser in Morgantown, WV notes that home prices near West Virginia University have been rising rapidly due to strong rental demand from students. This is an example of which value principle?
- Interim use in West Virginia appraisal refers to a property's:
- A West Virginia appraiser determines a property's value using the sales comparison approach. A comparable property sold for $180,000 but has a garage valued at $10,000 that the subject property lacks. The adjusted sale price of the comparable is:
- The principle of substitution, which underlies all three approaches to value, states that:
- In the sales comparison approach, adjustments are made to the comparable properties because:
- In West Virginia, the income approach to value is MOST appropriate for:
- External obsolescence (economic or locational obsolescence) in a West Virginia appraisal is caused by:
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