Which appraisal method is most commonly used for residential properties and relies on recent sales of comparable properties?
Correct Answer
B) Sales comparison approach, used for residential properties with available comps
The sales comparison approach estimates value by comparing the subject property to recently sold comparable properties, adjusting for differences in features, condition, and location. It is the preferred and most reliable method for valuing residential real estate where sufficient comparable sales data is available.
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Related Topics & Key Terms
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Related Concepts
Many states have laws to limit how much property taxes can increase each year, regardless of market value fluctuations.
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
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In Utah, property taxes are collected by which governmental entity?
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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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