hard · National Real Estate Exam valuation
During a transaction review led by Taylor Chen, the following issue arises: The assignment involves a relatively new special-purpose building with few comparable sales.
How should the licensee handle the situation?
- Use assessed value as a substitute for market value.
- Use the cost approach: land value plus improvement cost minus depreciation.
- Ignore land value because the improvements are new.
- Use only the gross rent multiplier because the building is special purpose.
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