The sales comparison approach to appraisal is most commonly used for which type of property?
Correct Answer
B) Residential properties
The sales comparison approach is most commonly used for residential properties because there are typically many comparable sales available in the market. It is less reliable for unique or special-use properties where few comparables exist. While it can be applied to commercial properties when sufficient data is available, it is the primary method used for valuing homes and other residential real estate.
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Related Topics & Key Terms
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Related Concepts
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
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- → Three depreciation:
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