For appraising a vacant lot for single-family residence construction, which approach applies?
Correct Answer
A) Market Data/Sales Comparison
The Sales Comparison (Market Data) Approach is best for vacant land because it compares the subject property to similar recently sold properties in the area.
Why This Is the Correct Answer
More Valuation Questions
Example of economic obsolescence in real estate?
An appraiser receives a request to perform a retrospective appraisal as of a date five years in the past for estate tax purposes. Under USPAP, can the appraiser perform this assignment?
Who typically hires the appraiser in a real estate transaction?
Which appraisal report type do California lenders commonly rely on for single-family residence financing?
An appraiser's report must identify the intended use and intended users of the appraisal. Why does USPAP require this information?
- → Return of an investor’s investment is provided for through:
- → An appraiser has been asked to provide a restricted appraisal report instead of an appraisal report for a lending assignment. Under USPAP, what is the key difference between these two report options?
- → How often must a licensed appraiser complete continuing education courses that include USPAP updates to maintain their license?
- → Under USPAP, what is the purpose of the Competency Rule?
- → All of the following are one of the four important elements of value, except:
- → An appraiser keeps a workfile for every appraisal assignment. Under USPAP, how long must the appraiser retain the workfile after the report is issued?
- → Under the replacement cost approach of appraisal, an appraiser is least interested in:
- → The appraisal process which allocates a percentage of a property’s total value to the land and a percentage to the improvements is known as:
- → A trainee appraiser performed most of the field work for a residential appraisal, but the supervising appraiser signed the report. Under USPAP, who is responsible for the quality of the appraisal?
- → A property's value decreased because a noisy highway was built nearby. This is an example of:
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