Property Valuation
The sales comparison approach to value relies primarily on:
ACapitalization of net operating income
BReplacement cost minus depreciation
CRecent sales of comparable properties✓ Correct
DThe assessed value of the property
Explanation
The sales comparison approach (market approach) estimates value by comparing the subject property to recently sold comparable properties, adjusting for differences.
Related Massachusetts Property Valuation Questions
- The term 'highest and best use' in appraisal means the use that is:
- Economic obsolescence (external obsolescence) is caused by:
- Regression in appraisal holds that the value of a superior property is:
- The 'effective gross income' (EGI) of a rental property is calculated as:
- Functional obsolescence in a property refers to:
- The cost approach to value is most useful for appraising:
- An appraisal is an estimate of value while a CMA (Comparative Market Analysis) is:
- The income capitalization approach to value is most appropriate for:
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