Property Valuation
The sales comparison approach to value relies primarily on:
ACapitalization of net operating income
BCost to reproduce or replace the improvements
CRecent sales of comparable properties✓ Correct
DAssessed value set by the county
Explanation
The sales comparison approach bases value on recent arm's-length sales of comparable properties, adjusting for differences between comps and the subject property.
Related North Carolina Property Valuation Questions
- Effective gross income (EGI) in an income analysis is calculated as:
- The 'economic life' of a building in NC appraisal is defined as:
- Plottage value refers to:
- What is the principle of substitution in real estate?
- A NC appraiser who is hired by a buyer's lender has their primary client relationship with:
- A NC appraiser who determines that a property's highest and best use is for residential development rather than the current agricultural use would reflect this in:
- A final value opinion in a real estate appraisal is derived by:
- In the sales comparison approach, an adjustment is made for a feature the comparable has but the subject lacks. This is:
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