California Real Estate Practice Exam

When appraising a church, an appraiser would most likely use which valuation approach?

1. Income approach

2. Sales comparison approach

3. Cost approach

4. Market value approach

The correct answer is: Cost approach

The most appropriate valuation approach for appraising a church would be the cost approach. This is because the cost approach considers the current value of the property and takes into account the cost of constructing a similar church building. The income approach may not be suitable for a church as they are not typically income-generating properties. The sales comparison approach may also not be a good fit as churches have unique characteristics that make it difficult to find truly comparable properties. The market value approach is not a specific valuation approach, but rather a concept used to determine the overall value of a property based on all relevant factors.