Property Valuation
An appraiser in the Puget Sound region is reconciling three approaches to value: cost approach = $510,000, sales comparison approach = $495,000, income approach = $480,000. For a single-family residence, the appraiser should give primary weight to:
AThe cost approach because it is the most objective
BThe sales comparison approach because it best reflects what buyers pay in the market✓ Correct
CThe income approach because it reflects investment returns
DThe average of all three approaches: $495,000
Explanation
For single-family residential properties, the sales comparison approach is generally given primary weight because it directly reflects buyer behavior and market activity. The income approach is secondary for investment properties, while the cost approach is secondary for all property types.
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