Property Valuation
The sales comparison approach is most reliable when:
AThere are no recent comparable sales
BThere are multiple recent, arm's-length sales of similar properties✓ Correct
CThe property is unique with no comparables
DThe property generates significant income
Explanation
The sales comparison approach is most reliable and commonly used when there are multiple recent, comparable, arm's-length sales providing strong market evidence for the subject property's value.
Related Kentucky Property Valuation Questions
- A Kentucky horse farm near Lexington sells for $2,400,000 and has a net operating income of $120,000 per year. What is the capitalization rate?
- An appraiser in eastern Kentucky is valuing a property that sits above an active coal mine. The most significant value concern is:
- A Kentucky appraiser who determines a property's value is below the contracted purchase price should:
- In Kentucky, an automated valuation model (AVM) is:
- Progression in property valuation means a lower-value property:
- The income approach to value is most appropriate for which type of Kentucky property?
- Accrued depreciation in the cost approach is the difference between:
- A Kentucky appraiser determines that a property's highest and best use is a small office building, but the current use is a single-family home. The difference in value between the current use and the highest and best use represents:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →