Property Valuation

A NH appraiser determines a value of $410,000 using the sales comparison approach and $390,000 using the cost approach. For a 20-year-old residential property, the appraiser would likely:

AAverage the two approaches to arrive at $400,000
BGive more weight to the sales comparison approach as the most reliable for residential property✓ Correct
CUse the cost approach as it is always the most accurate
DReport both values and let the buyer decide

Explanation

For residential properties with ample comparable sales, the sales comparison approach is typically given the most weight in the final reconciliation. The cost approach is less reliable for 20-year-old properties due to challenges in estimating accumulated depreciation.

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