Property Valuation
A Massachusetts appraiser reconciles three approaches to value: Cost approach = $480,000; Sales comparison = $465,000; Income approach = $452,000. For a single-family residence, the appraiser would most likely give the greatest weight to:
AThe cost approach
BThe income approach
CThe sales comparison approach✓ Correct
DAn equal average of all three
Explanation
For single-family residential properties, the sales comparison approach receives the most weight because it best reflects the actions of buyers and sellers in the market. The income approach is least relevant for owner-occupied residences, and the cost approach is most useful for new construction.
Related Massachusetts Property Valuation Questions
- The 'operating expense ratio' for a Massachusetts income property is calculated as:
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