Property Valuation
In Kentucky, the 'market data approach' is another term for the:
ACost approach
BIncome approach
CSales comparison approach✓ Correct
DReplacement cost approach
Explanation
The sales comparison approach (also called the market data approach) estimates value by comparing the subject property to recent sales of similar properties.
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Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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