Property Valuation
When appraising a New Orleans shotgun house, an appraiser finds very few recent sales of comparable properties. The appraiser should:
AAbandon the sales comparison approach entirely
BExpand the search area and time frame for comparable sales, making appropriate adjustments for location and time✓ Correct
CUse only the cost approach
DAssign an arbitrary value based on replacement cost
Explanation
When comparable sales are limited, appraisers expand the geographic search area and/or time frame to find suitable comparables, then make appropriate adjustments for differences in location, time, and condition. All applicable approaches should still be considered.
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