Property Valuation
The 'three approaches to value' in real estate appraisal are:
AIncome, cost, and tax assessment approaches
BSales comparison, cost, and income approaches✓ Correct
CMarket value, investment value, and assessed value
DGross rent multiplier, cap rate, and cash-on-cash approaches
Explanation
The three appraisal approaches to value are: (1) Sales Comparison Approach (comparing the subject to recent comparable sales); (2) Cost Approach (estimating land value plus depreciated cost of improvements); and (3) Income Approach (capitalizing the property's income stream). Appraisers use the approaches most appropriate for the property type.
Related Texas Property Valuation Questions
- Reproduction cost new and replacement cost new are two methods used in the cost approach. The difference is that:
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