Which type of property is the cost approach MOST applicable to appraise?

Which type of property is the cost approach

Multiple choice — select the best answer

AOlder residential properties in a declining neighborhood
BIncome-producing commercial properties with stable rent rolls
CSpecial-purpose properties such as schools, churches, or public buildings
DSingle-family residences in an active resale market

✓ Correct answer: C. Special-purpose properties such as schools, churches, or public buildings The cost approach is most reliable for special-purpose or unique properties (schools, churches, government buildings) because there are few comparable sales or rental data from which to develop the sales comparison or income approaches.

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