Question

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.

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.