Property Valuation
The sales comparison approach to property valuation is MOST appropriate when appraising:
AA special-purpose property such as a church or school
BA single-family residential property in an active market✓ Correct
CIncome-producing commercial real estate
DA newly constructed industrial warehouse with no comparable sales
Explanation
The sales comparison approach relies on recent comparable sales data. It is most reliable for single-family homes in active markets where many similar properties have recently sold. Special-purpose and income properties typically rely more on cost or income approaches.
Related California Property Valuation Questions
- The concept of 'regression' in real estate appraisal means:
- What is the cost approach to value?
- The income approach to value is most commonly used for:
- According to the principle of 'contribution,' an improvement adds value to a property:
- Functional obsolescence refers to:
- A Comparative Market Analysis (CMA) prepared by a real estate agent is:
- The 'effective age' of a building used in appraisal is best defined as:
- When reconciling the three approaches to value in an appraisal, the appraiser should:
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