Property ValuationIntermediateDelaware Exam
Which approach to value is most appropriate for a Delaware single-family residence in a neighborhood of recent sales?
AIncome approach
BCost approach
CSales comparison approachCorrect
DGross rent multiplier approach
Why Sales comparison approach Is Correct
Answer C: Sales comparison approach
The sales comparison approach (market approach) is most appropriate for residential properties where comparable sales data is available. It involves comparing the subject property to recently sold similar properties.
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
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