Property Valuation
An Iowa appraiser reconciles the three approaches to value and gives the income approach 60% weight, sales comparison 30%, and cost approach 10% for a large apartment complex. This is appropriate because:
AApartment complexes are primarily bought based on income potential✓ Correct
BCost approach is always least reliable
CSales comparison is always most reliable
DIowa law requires this weighting for apartment complexes
Explanation
For income-producing properties like apartment complexes, investors primarily make purchase decisions based on income potential. The income approach therefore receives the most weight in reconciliation.
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