A Florida appraiser is valuing a marina in the Keys that includes boat slips, a fuel dock, and a restaurant. The business has been impacted by recent hurricane damage and environmental regulations affecting fuel operations. The owner wants to sell but is unsure about the highest and best use. Which approach would likely provide the most reliable indication of value in this complex situation?
Correct Answer
C) Sales comparison approach using recent marina sales with similar challenges
The sales comparison approach using recent marina sales with similar challenges would provide the most reliable indication because it reflects actual market behavior and buyer perceptions of properties with comparable issues. The cost approach doesn't reflect market acceptance of the use. Pre-hurricane income data doesn't reflect current reality. Land value approach assumes demolition without confirming that's the highest and best use.
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