The sales comparison approach to appraisal is most commonly used for which type of property?

Correct Answer

B) Residential properties with available comparable sales data

The sales comparison approach is most reliable and commonly used for residential properties because a sufficient number of recent, comparable sales (comps) are typically available in the market. The appraiser identifies similar properties that have recently sold, then makes adjustments for differences in features, location, and condition to arrive at an estimated value. This approach is less useful for unique or special-use properties, which lack comparable sales, and for income-producing properties, where the income approach is generally preferred.