Property Valuation
The sales comparison approach to value is MOST appropriate for:
AA special-purpose property like a church
BA single-family home in an active Missouri neighborhood✓ Correct
CA large apartment complex
DA new industrial building
Explanation
The sales comparison approach relies on recent sales of comparable properties. It is most applicable to residential properties in active markets where comparable sales are readily available.
People Also Study
Related Missouri Questions
- In Missouri, the sales comparison approach requires a minimum of how many comparable sales?Property Valuation
- In Missouri, the market data approach (sales comparison) requires the appraiser to make adjustments for differences between comparable sales and the subject property. An adjustment for a feature the subject has but the comparable lacks is:Property Valuation
- A Missouri appraiser concludes a value of $285,000. They note that the sales comparison approach was given the most weight because:Property Valuation
- A Missouri appraiser using the sales comparison approach makes a negative adjustment for a feature the subject property lacks but the comparable has. This means:Property Valuation
Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
DepreciationA reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Study This Topic
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →