Which statement best describes the sales comparison approach as used in NH residential appraisals?
Correct Answer
B) It is the primary method for appraising residential properties, using recent comparable sales adjusted for differences
The sales comparison approach is the primary appraisal method used for residential properties in NH and throughout the United States. It estimates value by analyzing recent sales of similar (comparable) properties in the same market area and making dollar adjustments for differences in features such as size, condition, location, and amenities. The income approach is favored for income-producing properties, while the cost approach is most useful for new construction or special-use properties.
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