Property Valuation
When appraising a lakefront cottage in the NH Lakes Region, an appraiser places significant weight on the comparable sales approach. This is most appropriate because:
AThe income approach is mandated by NH law for vacation properties
BLakefront properties are typically owner-occupied and comparable sales best reflect market value✓ Correct
CThe cost approach is the only recognized method for seasonal properties
DNH prohibits the income approach for residential appraisals
Explanation
For residential properties—including seasonal lakefront cottages—the sales comparison approach is generally the most reliable indicator of market value. Buyer and seller behavior in the marketplace best reflects what similar properties command in the NH Lakes Region.
Related New Hampshire Property Valuation Questions
- Functional obsolescence in a New Hampshire property is best exemplified by:
- An appraiser estimates land value separately in the cost approach using the:
- When a real estate agent prepares a comparative market analysis (CMA), the agent is providing:
- The 'income capitalization approach' to value is most appropriate for:
- The cost approach to value is most reliable when appraising:
- The income capitalization approach divides net operating income by the capitalization rate to arrive at:
- A NH real estate professional conducting a broker price opinion (BPO) should understand that a BPO:
- An NH appraiser who is reviewing an older appraisal to determine if it is still valid should consider:
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