A Florida appraiser is valuing a unique waterfront mansion in Palm Beach with no recent comparable sales. The property generates rental income of $25,000 per month and has historical significance. Which combination of appraisal approaches would be most appropriate for this assignment?
Correct Answer
B) Cost approach and income approach
For a unique property with no comparable sales, the cost approach provides value indication based on replacement cost, while the income approach captures the property's income-generating capability. The sales comparison approach alone is inadequate without comparable sales data. The income approach alone doesn't account for the property's unique characteristics and historical significance. Combining sales comparison with income approach is not viable without comparable sales data.
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An appraiser in Miami is using the cost approach to value a 5-year-old commercial building. The replacement cost new is $2,500,000, the land value is $800,000, and the total depreciation is estimated at $375,000. What is the indicated value using the cost approach?
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A Florida licensee preparing a CMA has three adjusted comparable sale prices: $325,000, $332,000, and $338,000. What is the average adjusted indication?