Which appraisal approach is most commonly used for residential properties in Ontario?
Correct Answer
B) Comparison approach
The comparison approach (also called sales comparison approach) is most commonly used for residential properties because there is typically sufficient market data from recent sales of similar properties. This approach relies on comparing the subject property to recently sold comparable properties.
Why This Is the Correct Answer
The comparison approach is most commonly used for residential properties because residential markets typically have sufficient recent sales data of similar properties. This approach directly reflects market conditions and buyer behavior, making it the most reliable method for typical homes, condos, and residential properties. It's the standard approach taught in Canadian real estate courses and preferred by lenders, appraisers, and real estate professionals for residential valuations due to its market-based foundation and data availability.
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