Property Valuation
The sales comparison approach to value is MOST appropriate for appraising:
AA large industrial warehouse
BA single-family residence in an active market✓ Correct
CA special-use property like a church
DA large income-producing apartment complex
Explanation
The sales comparison approach is most reliable when there are ample comparable sales in the marketplace, making it the preferred method for single-family residential properties.
Related Arizona Property Valuation Questions
- An Arizona residential appraiser uses the sales comparison approach and finds the subject property has a pool that no comparable sale has. The appraiser should:
- In the income approach to value, the capitalization rate is calculated as:
- In Arizona, an 'as-is' appraisal differs from an 'as-completed' or 'subject-to' appraisal in that:
- An Arizona appraiser who uses only 2 comparables in the sales comparison approach is:
- In Arizona, the 'gross income multiplier' (GIM) at the annual level is used differently from the GRM (gross rent multiplier) in that:
- A commercial property's 'potential gross income' (PGI) represents:
- Which of the following BEST defines 'highest and best use' of a property?
- In the income approach, if an Arizona property has an NOI of $72,000 and sold for $900,000, what is the overall capitalization rate?
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