Property Valuation
When appraising a two-family home in Brooklyn, an appraiser most likely uses which primary valuation approach?
ACost approach only
BIncome approach only
CSales comparison approach, with income approach as a check✓ Correct
DGross rent multiplier approach only
Explanation
For small residential income properties like two-family homes, appraisers typically rely primarily on the sales comparison approach (comparing similar sold properties), with the income approach (GRM or income capitalization) used as a secondary check.
Related New York Property Valuation Questions
- In New York, the 'economic life' of a building refers to:
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- The term 'capitalization rate' (cap rate) in New York real estate income property valuation is calculated as:
- In a New York appraisal using the cost approach, 'depreciation' refers to:
- In New York, a 'prospective appraisal' estimates the value of a property:
- In New York, the 'market approach' to value is based on the economic principle of:
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