When is the depreciated replacement cost method most appropriate?
Correct Answer
C) For specialised properties with little or no market evidence
The depreciated replacement cost method is typically used for specialised properties where there is insufficient market evidence from sales or rental transactions. This includes properties like schools, hospitals, or unique industrial facilities where market-based approaches are not feasible.
Why This Is the Correct Answer
Depreciated replacement cost is used where market evidence from sales or rents is too thin to value the asset, which is typical of specialised properties such as schools, hospitals and purpose-built facilities.
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More Valuation Questions
In applying the summation approach to value a heritage-listed property in Sydney, which additional factor must be specifically considered?
In Queensland, the statutory land valuation that councils use to levy rates is made by:
The comparable sales method of property valuation involves:
A Queensland property owner disagrees with the Valuer-General's valuation of their land. The owner may:
When valuing an income-producing property in Queensland using the capitalisation approach, a valuer primarily considers:
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- → A Comparative Market Analysis (CMA) prepared by a Queensland real estate agent differs from a formal valuation in that:
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- → A Queensland seller asks an agent what her house is likely to sell for, and the agent decides to answer. What must he give her?
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- → When conducting a property valuation in Queensland, what is the most critical consideration regarding comparable sales data?
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