Question

Which approach would be most appropriate in the appraisal of a uniquely designed and recently constructed public library building?

a. building residual approach
b. cost approach
c. income approach
d. sales comparison approach

Answer 1

The most appropriate approach for appraising a uniquely designed and recently constructed public library building is the cost approach.

Step-by-step explanation:

The most appropriate approach in the appraisal of a uniquely designed and recently constructed public library building would be the cost approach. This approach estimates the total cost of replacing the building with a similar one, taking into account factors such as the original cost, depreciation, and current construction costs. It is particularly useful for valuing special-purpose properties like a public library building.

The building residual approach, on the other hand, focuses on the residual value of the building after accounting for land value and any improvements. This approach is commonly used for residential and commercial properties.

The income approach is used to estimate the value of income-producing properties by analyzing the potential income they can generate. However, since a public library building typically does not generate income directly, this approach may not be the most appropriate in this case.

Therefore the correct answer is b. cost approach