Property Valuation
What are the three standard approaches to property valuation?
APurchase approach, listing approach, and assessment approach
BSales comparison approach, cost approach, and income approach✓ Correct
CMarket approach, replacement approach, and rental approach
DComparative approach, structural approach, and financial approach
Explanation
The three standard appraisal approaches are: (1) Sales Comparison (comparing to similar recent sales), (2) Cost Approach (land value + cost to rebuild minus depreciation), and (3) Income Approach (for investment properties, based on income generated). Each method provides a different perspective on value.
Related California Property Valuation Questions
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- A property generates an NOI of $60,000. Comparable properties sell at a 5% cap rate. What is the indicated value using the income approach?
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- When adjusting a comparable sale in the sales comparison approach, an appraiser ADDS value to the comparable when the comparable is:
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