An appraiser develops all three approaches on a new suburban house. Which normally receives the greatest weight?

Correct Answer

C) The sales comparison approach to value

Why this is correct: For typical single-family homes, the sales comparison approach is the most direct reflection of market behavior, as buyers and sellers primarily compare similar properties. It is generally given the greatest weight when sufficient comparable sales data exists. Why the other choices are wrong: 'The cost approach, because the house is new' is secondary; it measures cost, not necessarily market value, though it can be a useful check. 'The income approach, because rents are known' is usually not applicable or primary for owner-occupied housing. 'All three equally, since all were developed' is arbitrary; equal weighting is not required or typically justified. Exam tip: For owner-occupied residential property, sales comparison is king. Weight the other approaches based on their relevance as supporting evidence.