Property Valuation
When using the sales comparison approach to value a property in Alabama, the appraiser:
AEstimates the cost to rebuild the property
BDivides net operating income by a cap rate
CCompares the subject property to recent sales of similar properties✓ Correct
DCalculates the present value of future rental income
Explanation
The sales comparison approach compares the subject property to recent sales of similar (comparable) properties, adjusting for differences. It is the most common approach for residential property valuation.
Related Alabama Property Valuation Questions
- The income capitalization approach to appraisal is MOST appropriate for:
- The principle of balance in real estate states that maximum value is achieved when:
- In the sales comparison approach, the subject property is compared to which of the following?
- A comparable sale that sold 18 months ago may require a time (market conditions) adjustment because:
- An appraiser who uses paired sales analysis is attempting to:
- An appraiser's certification in the appraisal report states that the opinion of value is:
- In an appraisal using the cost approach, the term 'reproduction cost' means:
- Which approach to value is most commonly used to appraise single-family residences?
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