In a small country town, an appraiser was asked to place a value on the Town Hall. It was a beautiful building with unique Roman architecture. Which approach would the appraiser most likely emphasize?

Question

Quizplus · Accepted Answer

The cost approach is most suitable for unique properties like the Town Hall with unique Roman architecture, as it estimates the cost to replace the building with a similar one, which is useful when comparable sales data (comparison approach) might not be available due to the unique nature of the property. The capitalization and gross rent multiplier methods are more commonly used for income-producing properties, which the Town Hall likely is not.

In a Small Country Town, an Appraiser Was Asked to Place