An appraiser values a 40-year-old single-family home in a subdivision where 11 similar houses sold in the past 6 months.
Correct Answer
D) Sales comparison carries the most weight, on the strength of 11 sales
Where a market of comparable sales exists, the sales comparison approach speaks most directly to what a buyer would pay, and eleven sales in six months is such a market. Other choices: age argues against the cost approach rather than for it, because forty years of depreciation is the hardest part of that method to estimate; the income approach fits property bought for its rent; and reconciliation weighs the approaches rather than averaging them. Source: Approach selection; no market figure asserted
Why This Is the Correct Answer
Where a market of comparable sales exists, the sales comparison approach speaks most directly to what a buyer would pay, and eleven sales in six months is such a market. Other choices: age argues against the cost approach rather than for it, because forty years of depreciation is the hardest part of that method to estimate; the income approach fits property bought for its rent; and reconciliation weighs the approaches rather than averaging them. Source: Approach selection; no market figure asserted
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