Property Valuation
An appraiser estimating the value of a historic Portland craftsman home would most likely rely primarily on:
AIncome capitalization approach
BCost approach
CSales comparison approach✓ Correct
DGross rent multiplier
Explanation
The sales comparison approach is the most commonly used method for single-family residential homes because there are usually sufficient comparable sales to analyze. The income approach is more suited to investment property; the cost approach is used when comparables are scarce.
Related Oregon Property Valuation Questions
- The income capitalization approach to value is most useful for appraising:
- External obsolescence in real estate appraisal results from:
- An appraiser applies the sales comparison approach and finds three comparables with adjusted values of $385,000, $392,000, and $389,000. The appraiser gives the most weight to the comparable requiring the fewest adjustments. Which comparable most likely receives the most weight?
- In Oregon, a Broker Price Opinion (BPO) is typically used for:
- An appraiser notes that a property has 'curable' physical deterioration. 'Curable' means:
- In the sales comparison approach, an 'arm's length transaction' is preferred because:
- A property generates a net operating income of $90,000 and is valued at $1,200,000. What is the capitalization rate?
- An Oregon appraiser is asked to provide a 'retrospective appraisal' (as of a past date). This means the appraiser:
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