Property Valuation
An Arizona appraiser is valuing a historic adobe home. There are very few comparable sales and it generates no rental income. Which appraisal approach would MOST likely be given the most weight?
ASales comparison approach
BIncome approach
CCost approach✓ Correct
DGross rent multiplier approach
Explanation
When comparable sales are scarce and the property does not generate income (or income data is unavailable), the cost approach — estimating land value plus depreciated cost of improvements — is often given the most weight.
Related Arizona Property Valuation Questions
- In Arizona, an appraisal that is completed 'retrospectively' (for a date in the past) is called:
- An Arizona appraiser's determination that a property's highest and best use as if vacant differs from its current use is significant because it means:
- Excess land in appraisal refers to:
- In Arizona, a property appraiser must be free from 'coercion' or 'pressure' to hit a target value. This principle is codified in:
- An Arizona appraiser who uses only 2 comparables in the sales comparison approach is:
- The 'gross rent multiplier' (GRM) method for quick valuation of a rental property uses:
- A capitalization rate is derived in appraisal by:
- An Arizona property's 'going concern value' includes:
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