Property Valuation
The sales comparison approach estimates value by:
ACalculating the cost to replace the improvements
BCapitalizing the net operating income
CComparing the subject property to recent sales of similar properties✓ Correct
DEstimating the land value and adding depreciation
Explanation
The sales comparison (market data) approach estimates value by comparing the subject property to recently sold comparable properties (comps) and making adjustments for differences.
Related Arkansas Property Valuation Questions
- External obsolescence in property valuation is caused by:
- An appraisal 'adjustment for time' is needed when comparable sales:
- The term 'as-is market value' in an appraisal means:
- Transferable development rights (TDRs) affect property valuation because they:
- The concept of 'plottage' refers to:
- A comparable property sold for $310,000. It has one more bathroom than the subject. The market value of a bathroom is $8,000. The adjusted sale price of the comparable is:
- The principle of balance in appraisal states that:
- Capitalization rate (cap rate) is defined as:
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