The sales comparison approach to value is most appropriate for:
Why Single-family residential properties Is Correct
Answer C: Single-family residential properties
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
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Related North Carolina Questions
- In the sales comparison approach, a positive adjustment to a comparable sale means:Property Valuation
- An adjustment in the sales comparison approach for a feature the subject property HAS but the comparable does NOT have requires the appraiser to:Property Valuation
- The sales comparison approach to value relies primarily on:Property Valuation
- When adjusting comparables in the sales comparison approach, the appraiser adjusts the comparable, not the subject. If a comp has a superior feature, the adjustment is:Property Valuation
- A NC property appraiser finds three comparable sales adjusted to $285,000, $291,000, and $288,000. The most likely indicated value for the subject is:Real Estate Math
Key Terms to Know
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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