Property Valuation
In Wyoming, the cost approach to value is most useful for:
AOlder historic properties with many comparables
BNew or special-use properties where comparable sales are scarce✓ Correct
CVacant land with no improvements
DIncome-producing apartment buildings
Explanation
The cost approach is most applicable for new construction, special-use properties (churches, schools), or properties where the improvements are unique and few comparables exist.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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