Property Valuation
The 'sales comparison approach' to property valuation is MOST appropriate for:
ASpecial-use properties like churches
BIncome-producing commercial properties
CResidential properties where comparable sales data is available✓ Correct
DNewly constructed properties with no comparable sales
Explanation
The sales comparison approach is most reliable for residential properties where an active market provides recent, comparable sales. It compares the subject property to similar properties that have recently sold, adjusting for differences.
Related Alabama Property Valuation Questions
- Which organization sets minimum qualification standards for state-certified and licensed real estate appraisers?
- In the sales comparison approach, adjustments are made to the comparable properties to account for differences. If a comparable has a feature the subject property lacks, the adjustment to the comparable is:
- What is 'effective age' of a building in appraisal terms?
- Which type of depreciation is generally considered incurable and originates from outside the property?
- What is the principle of 'substitution' in real estate appraisal?
- The principle of 'contribution' in appraisal states that:
- Physical deterioration that can be economically repaired is called:
- Plottage is the increase in value resulting from:
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