A Florida appraiser is valuing a 15-year-old single-family home in a well-established neighborhood with many recent comparable sales. The property is owner-occupied and well-maintained. Which appraisal approach would typically be given the most weight in determining the final value estimate?
Correct Answer
D) Sales comparison approach
The sales comparison approach is typically given the most weight for single-family residential properties in established neighborhoods with good comparable sales data, as it reflects current market conditions and buyer behavior. The cost approach is less reliable for older properties due to depreciation estimation difficulties. The income approach is primarily used for investment properties, not owner-occupied homes. Equal weighting is not typical when one approach clearly provides better market evidence.
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In a Ocala transaction, a buyer wants the Florida rule on Florida-specific market influences on approach selection. Which statement is correct?
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An appraiser in Miami is using the cost approach to value a 5-year-old commercial building. The replacement cost new is $2,500,000, the land value is $800,000, and the total depreciation is estimated at $375,000. What is the indicated value using the cost approach?