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 estimates value by comparing the subject property to recently sold similar properties (comparables or 'comps') in the same market area. It is most commonly used for residential properties because sufficient comparable sales data is typically available. Special-use properties are better suited to the cost approach, while income-producing commercial properties are typically appraised using the income approach.
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