What are the three traditional approaches to property valuation used in Alberta?
Correct Answer
B) Cost approach, income approach, and direct comparison approach
The three traditional approaches to property valuation in Alberta are: (1) the direct comparison approach, which compares the property to similar recent sales; (2) the cost approach, which estimates the cost to replace the improvements less depreciation plus land value; and (3) the income approach, which capitalizes the net income the property can generate.
Why This Is the Correct Answer
The three traditional valuation approaches recognized under Alberta assessment practice and standard appraisal methodology are: the cost approach (replacement cost less depreciation plus land), the income approach (capitalization of net operating income), and the direct comparison approach (adjusted comparable sales analysis). These three methods are established under the Municipal Government Act and Canadian Uniform Standards of Professional Appraisal Practice.
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In Ontario, what is the key difference between an appraisal and a Comparative Market Analysis (CMA)?
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