ValuationAppraisal MethodsMEDIUM
The cost approach to valuation in South Dakota would be most appropriate for:
Correct Answer
B) A newly built school or church
The cost approach is most appropriate for new or special-purpose properties (schools, churches, government buildings) that are rarely sold and produce no income. It estimates the cost to rebuild, minus depreciation, plus land value.
Answer Options
A
A 50-year-old residential homeB
A newly built school or churchC
A rental apartment complexD
A vacant lotWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Valuation Question
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Background Knowledge for Valuation
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Real World Application in Valuation
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Common Mistakes to Avoid on Valuation Questions
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Related Topics & Key Terms
Related Topics:
reproduction-vs-replacementdepreciation-typesland-valuationspecial-purpose
Key Terms:
cost approachreplacement costdepreciationland valuespecial purpose
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