Vincent is tasked with deriving the value for a large, custom home that was constructed nine months ago on a secluded 10-acre lot. Which approach could be considered the most reliable for valuation?

a. cost approach

b. income approach

c. sales comparison approach

d. All are equally reliable.

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Business

Rabbit

14 November, 20:56

Vincent is tasked with deriving the value for a large, custom home that was constructed nine months ago on a secluded 10-acre lot. Which approach could be considered the most reliable for valuation?

a. cost approach

b. income approach

c. sales comparison approach

d. All are equally reliable.

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Answers (1)

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Barnett · Answer 1

Answer: Cost Approach

Explanation:

The best method Vincent should use for valuation is the cost approach.

The cost approach is a method of worth estimation that considers the cost of building an already existing structure: checking the value of the land used for building, the cost of construction and subtracting the devaluation overtime.

Vincent is tasked with deriving the value for a large, custom home that was constructed nine months ago on a secluded 10-acre lot. Which approach could be considered the most reliable for valuation?a. cost approachb. income approachc. sales comparison approachd. All are equally reliable.

Vincent is tasked with deriving the value for a large, custom home that was constructed nine months ago on a secluded 10-acre lot. Which approach could be considered the most reliable for valuation?

a. cost approach

b. income approach

c. sales comparison approach

d. All are equally reliable.