Property Valuation
An appraiser's estimate of value for a Maryland property found under the income approach is $600,000 and under the sales comparison approach is $620,000. In reconciliation for a residential property, the appraiser would most likely:
AAverage the two values ($610,000)
BGive greatest weight to the sales comparison approach for a residential property✓ Correct
CUse the income approach exclusively
DReport both values without reconciling
Explanation
For residential properties, the sales comparison approach is typically given the most weight in reconciliation because it directly reflects what buyers are paying in the market.
Related Maryland Property Valuation Questions
- In a competitive market analysis (CMA), a Maryland real estate agent compares the subject property to:
- Which approach to value is most commonly used by SDAT to assess residential property in Maryland?
- Which appraisal approach estimates value by comparing the subject property to recently sold similar properties?
- The principle of substitution states that a buyer will pay no more for a property than:
- The cost approach to value is MOST reliable for appraising:
- The Maryland SDAT assesses property at what percentage of its full cash value?
- A Maryland appraiser uses paired sales analysis to:
- In the income approach, potential gross income (PGI) is best described as:
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