A Florida appraiser is valuing a 20-year-old single-family home in a well-established Orlando neighborhood with many comparable recent sales. The property is owner-occupied and in good condition. Which appraisal approach would typically be given the most weight in this valuation?
Correct Answer
B) Sales comparison approach
The sales comparison approach is typically given the most weight for single-family residential properties in established neighborhoods with adequate comparable sales data. The cost approach is less reliable for older properties due to depreciation factors. The income approach is primarily used for investment properties. The replacement cost approach is a component of the cost approach, not a separate method.
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Previous Question
Scenario Granite Guide raises this Florida point. A Florida appraiser is using the income approach on a small income property with net operating income of $24,000 and an overall capitalization rate of 9.00%. What value indication results?
Next Question
An appraiser in Miami is using the cost approach to value a 5-year-old commercial building. The replacement cost new is $850,000, the land value is $200,000, and the total depreciation is estimated at $75,000. What is the indicated value using the cost approach?