The cost approach to appraisal is most appropriate in Louisiana for:
Correct Answer
B) Newly constructed properties or special-use properties where comparable sales and income data are limited
The cost approach estimates land value plus the cost to reproduce or replace improvements, minus depreciation. It is most reliable for new construction and special-purpose properties (churches, schools) where market comparables are scarce.
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Related Topics & Key Terms
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Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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