Property Valuation
Which appraisal approach estimates value by analyzing recent sales of comparable properties?
ACost approach
BIncome approach
CSales comparison approach✓ Correct
DGross rent multiplier approach
Explanation
The sales comparison approach (also called the market data approach) estimates a property's value by comparing it to recently sold similar properties in the same market, making adjustments for differences.
Related Arkansas Property Valuation Questions
- A going-concern value refers to:
- Market value is best defined as:
- The principle of 'substitution' in real estate appraisal states that:
- Which appraisal principle holds that value is created by the expectation of future benefits?
- The cost approach to value is MOST appropriate for appraising:
- External obsolescence in property valuation is caused by:
- External (economic) obsolescence differs from other forms of depreciation because it is:
- The principle of substitution states that a buyer will pay no more for a property than:
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