The sales comparison approach to appraisal is most appropriate for which type of property?
Correct Answer
B) Residential properties with sufficient comparable sales data available
The sales comparison approach estimates value by comparing the subject property to recently sold, similar properties (comparables or 'comps') in the same market area. It is most reliable and widely used for residential properties where adequate comparable sales data exists. It is less useful for unique, special-use, or income-producing properties where comparable sales are scarce.
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