Property Valuation
The 'sales comparison approach' to value is most reliable when:
AThere are few comparable sales available
BThe property is a unique historic structure
CThere are sufficient recent sales of similar properties✓ Correct
DThe property generates rental income
Explanation
The sales comparison approach works best when there are an adequate number of recent, similar, and verifiable sales of comparable properties in the same market area.
Related Tennessee Property Valuation Questions
- Comparative Market Analysis (CMA) is typically prepared by a:
- The cost approach formula is: Value = Land Value + (Cost New − Depreciation). If land value is $80,000, cost new is $250,000, and total depreciation is $40,000, what is the estimated value?
- The appraised value established in a residential appraisal is most accurately described as:
- In Tennessee's real estate market, the Nashville metropolitan area is known as one of the fastest-growing in the Southeast. This growth affects appraisals by:
- The Tennessee Certified Residential Appraiser classification allows appraisers to appraise:
- The principle of conformity states that value is maximized when:
- In the sales comparison approach, an appraiser makes a negative adjustment to a comparable sale when:
- When a comparable sale was distressed (sold in foreclosure at below-market price), an appraiser should:
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