A Florida appraiser is valuing a unique historical courthouse in St. Augustine that is being converted to a boutique hotel. There are no comparable sales of similar properties, and the income approach is difficult to apply due to the unique nature of the business. Which approach would be most appropriate and why?
Correct Answer
B) Cost approach due to the unique nature and lack of comparables
The cost approach is most appropriate for unique or special-purpose properties where comparable sales are not available and income projections are unreliable. Using residential comparables would not reflect the property's highest and best use. Hotel industry standards may not apply to this unique conversion. Equal weighting is inappropriate when approaches have varying reliability for the specific property type.
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When using the sales comparison approach in Florida, an appraiser would make adjustments for all of the following property characteristics EXCEPT:
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