Property Valuation
An appraiser in Spokane is valuing a gas station site. The most appropriate appraisal approach is typically:
ASales comparison approach using residential comps
BSales comparison approach using commercial/gas station sales, supported by income approach✓ Correct
CCost approach using residential construction costs
DIncome approach using apartment income multipliers
Explanation
For special-purpose commercial properties like gas stations, the sales comparison approach using comparable gas station sales is typically primary, supported by the income approach. Residential comparables are not appropriate for commercial special-purpose properties.
Related Washington Property Valuation Questions
- A Washington commercial real estate investor uses a 'debt coverage ratio' (DCR) to evaluate a property. A DCR of 1.25 means the NOI is:
- Under USPAP, a Washington appraiser who is related to the property owner by marriage should:
- A Washington apartment building has an NOI of $90,000 and sells for $1,200,000. What cap rate does this represent?
- The term 'reconciliation' in an appraisal report refers to:
- A Washington appraisal completed for a litigation purpose (e.g., a divorce proceeding) requires the appraiser to:
- A Washington appraiser uses the gross rent multiplier (GRM) method. A small rental property has a monthly rent of $2,500 and the GRM for the area is 150. The indicated value is:
- Under the income approach, a vacancy and collection loss allowance is deducted from potential gross income to account for:
- In Washington, when an appraiser is asked to value a property 'as of' a specific past date, this is called a:
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →