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ReconciliationMEDIUM4.5% of exam

Sales comparison indicates $485,000, cost $510,000 and income $475,000 for a 15-year-old single-family home. Buyers primarily purchase for occupancy, and verified comparable sales provide stronger evidence than the cost and income inputs. Which approach deserves most weight?

Correct Answer

A) Sales comparison, because the stated market evidence is strongest

The subject’s stated owner-occupant market and stronger verified competitive sales support greatest reliance on sales comparison. This follows the scenario’s evidence rather than a universal rule for houses. Neither conservatism, a highest indication nor counting methods justifies different weights.

Answer Options
A
Sales comparison, because the stated market evidence is strongest
B
Income approach, because it gives the most conservative value opinion
C
Cost approach, because it's the highest value
D
All approaches should be weighted equally

Why This Is the Correct Answer

The subject’s stated owner-occupant market and stronger verified competitive sales support greatest reliance on sales comparison. This follows the scenario’s evidence rather than a universal rule for houses. Neither conservatism, a highest indication nor counting methods justifies different weights.

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