Property Valuation
A South Dakota appraiser is asked to determine the value of a 500-unit apartment complex in Sioux Falls. Which approach is most appropriate?
ASales comparison only
BCost approach only
CIncome approach (with sales comparison as support)✓ Correct
DGross rent multiplier only
Explanation
For large income-producing properties, the income approach (capitalization or discounted cash flow) is primary, with the sales comparison approach providing market support.
Related South Dakota Property Valuation Questions
- In South Dakota, the 'effective age' of a building used in appraisal refers to:
- In the sales comparison approach to value, an appraiser makes adjustments to comparable sales for differences between the comparable and the subject property. If a comparable sale has a feature the subject property lacks, the appraiser should:
- Assessed value for property tax purposes in South Dakota is typically:
- An appraiser in South Dakota adjusts comparable sale prices for differences between comparables and the subject property. A comparable that is inferior to the subject in location would receive a:
- The principle of progression in South Dakota real estate states that:
- The cost approach to value is most useful for appraising:
- A South Dakota residential appraiser must complete how many hours of approved education to maintain their certified residential appraiser license?
- When a South Dakota property's improvements represent 80% of the total value, the land-to-improvement ratio is:
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