Which appraisal approach is most commonly used for single-family residential properties in Alberta?
Correct Answer
A) Comparison (market) approach
The comparison approach is most commonly used for residential properties because there are typically sufficient comparable sales of similar properties in the market. This approach relies on recent sales of similar properties to determine market value.
Why This Is the Correct Answer
The comparison approach is most commonly used for single-family residential properties because Alberta's residential markets typically have sufficient recent sales of similar properties. This approach directly reflects market behavior - how buyers and sellers actually determine value through comparison shopping. It provides the most reliable indication of current market value when adequate comparable sales exist, which is usually the case in Alberta's established residential neighborhoods.
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