Property Valuation
The sales comparison approach to value is most appropriate for:
ASpecial-use properties like churches and schools
BNew residential properties with no comparable sales
CResidential properties with adequate comparable sales data✓ Correct
DIncome-producing commercial properties
Explanation
The sales comparison (market data) approach is best suited for residential properties where sufficient recent sales of similar homes exist. It compares the subject to adjusted comparable sales.
Related Arkansas Property Valuation Questions
- Functional obsolescence in a property is caused by:
- The capitalization rate (cap rate) in the income approach is used to:
- A comparative market analysis (CMA) is performed by:
- The gross rent multiplier (GRM) is calculated as:
- The concept of 'plottage' refers to:
- When a comparable sale was a foreclosure or distressed sale, the appraiser should:
- The cost approach to value is most reliable for:
- A comparable home sold for $200,000. It has a garage worth $10,000 that the subject property lacks. The adjusted sale price of the comparable is:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →