Property Valuation
A Mississippi appraiser concludes a value of $425,000 using all three approaches: sales comparison ($430,000), cost approach ($445,000), and income approach ($420,000). The most weight should typically be given to which approach for a single-family home?
ACost approach since it reflects replacement cost
BSales comparison approach since it most directly reflects market behavior for owner-occupied homes✓ Correct
CIncome approach since investors would buy any property
DAll three equally without further analysis
Explanation
For single-family residential properties, the sales comparison approach is typically given the most weight because it directly reflects what buyers are actually paying for similar homes in the market. Owner-occupied homes are not primarily purchased as investments, making the income approach less relevant.
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