In reconciling the income approach for an owner-occupied single-family home, its weight is usually:
Correct Answer
A) Low — the type trades on ownership appeal, not income
Why this is correct: For owner-occupied single-family homes, the income approach typically receives low weight because the primary buyer pool (owner-occupants) values ownership appeal, not investment income. Why the other choices are wrong: Dominant over the sales comparison approach in every case is false; sales comparison is usually primary. Equal to the other approaches by rule is incorrect; no rule mandates equal weighting. Whatever produces the highest value is not a proper reconciliation principle. Exam tip: Weight approaches based on the market's behavior, not a fixed rule.
Why This Is the Correct Answer
Why this is correct: For owner-occupied single-family homes, the income approach typically receives low weight because the primary buyer pool (owner-occupants) values ownership appeal, not investment income. Why the other choices are wrong: Dominant over the sales comparison approach in every case is false; sales comparison is usually primary. Equal to the other approaches by rule is incorrect; no rule mandates equal weighting. Whatever produces the highest value is not a proper reconciliation principle. Exam tip: Weight approaches based on the market's behavior, not a fixed rule.
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