In Victoria, which of the following valuation methods is most commonly used to determine the market value of a standard residential property?
Correct Answer
C) Direct comparison (sales comparison) approach
The direct comparison (sales comparison) approach is the most widely used method for valuing standard residential properties in Victoria. It involves comparing the subject property with recent sales of similar properties in the area, making adjustments for differences in features, condition, and location.
Why This Is the Correct Answer
Standard homes trade often, so there is plenty of sales evidence. Direct comparison, which analyses recent sales of similar properties and adjusts for differences, is therefore the main method for valuing them.
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