The "sales comparison" approach is usually the best way to determine the value of a property when there are similar properties that have been sold recently. However, when it comes to "unimproved property" (property that doesn't have any existing improvements), the "cost approach" cannot be used as there is nothing to compare the value to.
These are questions that the above text answers:
1. What is the "sales comparison" approach used for in real estate valuation?
2. What is the "cost approach" used for in real estate valuation?
3. When is the "sales comparison" approach typically used to determine property value?
4. What type of property is the "cost approach" not suitable for?
5. What is the "cost approach" used to determine the value of?
6. What is the best way to determine the value of unimproved property?
7. Why can't the "cost approach" be used for unimproved property?
8. What is the limitation of the "cost approach" when it comes to unimproved property?
9. What is the alternative approach to determine the value of unimproved property?