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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Related Topics & Key Terms
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Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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