Property Valuation
The sales comparison approach to value is MOST reliable when:
AThe subject property is unique with few comparables
BThere are several recent arm's-length sales of similar properties in the area✓ Correct
CThe property is a large commercial building
DThe property has significant deferred maintenance
Explanation
The sales comparison approach is most reliable when there are multiple recent, arm's-length (market) sales of similar properties in the same area. It is the most common approach used for residential properties and requires good comparable sales data.
Related Illinois Property Valuation Questions
- What is 'reproduction cost' versus 'replacement cost' in the cost approach to appraisal?
- A capitalization rate of 5% versus 10% on similar properties would indicate that the property with a 5% cap rate:
- A subject property has a two-car garage, while the best comparable has a one-car garage. Paired sales data suggests a two-car garage adds $15,000 in value. The appraiser should:
- Functional obsolescence differs from physical deterioration in that functional obsolescence is caused by:
- When an appraiser reports a property's value 'as of' a specific date, they are providing:
- An appraiser's market value opinion assumes the most probable price a property would bring in a competitive open market under the following conditions EXCEPT:
- External obsolescence differs from functional obsolescence in that external obsolescence is caused by:
- Plottage (or assemblage) is a concept in real estate that refers to:
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →