Property Valuation
In New York, when appraising a luxury Manhattan condo, the appraiser will primarily use:
AThe income approach
BThe sales comparison approach, using recent comparable condo sales✓ Correct
CThe cost approach
DA gross rent multiplier
Explanation
For owner-occupied residential properties (including luxury condos), the sales comparison approach is the primary and most reliable method, comparing recent sales of similar units in the same or comparable buildings.
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Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
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