The sales comparison approach to appraisal is most commonly used for which type of property?
Correct Answer
B) Residential properties with sufficient comparable sales data available
The sales comparison approach, also known as the market data approach, is most commonly used to appraise residential properties because there are typically sufficient comparable sales (comps) available in the market. The appraiser identifies recently sold properties similar to the subject property and makes adjustments for differences. This approach is less useful for unique or special-use properties where comparable sales are scarce. Income-producing properties are typically appraised using the income approach, while special-use or unique properties often rely on the cost approach.
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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?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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