Property Valuation
The sales comparison approach to appraisal is most reliable when:
AThe subject property is a unique custom home with no comparables
BThere are sufficient recent sales of similar properties in the market✓ Correct
CThe property is a large income-producing apartment complex
DThe market has very few transactions over the past 12 months
Explanation
The sales comparison approach is most reliable in active markets with sufficient comparable sales data. It is the preferred method for residential properties because it directly reflects what buyers are actually paying in the marketplace.
Related Utah Property Valuation Questions
- Functional obsolescence in an appraisal refers to a loss in value due to:
- Depreciation in real estate appraisal refers to:
- Gross Rent Multiplier (GRM) is used to:
- A comparable sale used in a Utah appraisal should ideally be:
- The income approach yields the highest value indication when:
- The cost approach to value is most reliable for:
- The principle of substitution in real estate appraisal states:
- A Utah commercial appraiser using the discounted cash flow (DCF) analysis is:
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