Which valuation method would be most appropriate for valuing a unique heritage-listed property in WA with limited comparable sales?
Correct Answer
B) Summation method (cost approach), combining land value with depreciated replacement cost of improvements
The summation (cost) method is most appropriate for unique properties with limited comparable sales. It involves adding the value of the land to the depreciated replacement cost of improvements. For heritage-listed properties, the valuer must also consider the impact of heritage restrictions on value.
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