Property Valuation
The Wisconsin sales comparison approach to value is most appropriate for:
ASpecial-use properties such as churches or schools
BIncome-producing apartment buildings
CSingle-family residential properties with adequate comparable sales✓ Correct
DProperties with no recent comparable sales in the area
Explanation
The sales comparison approach is most reliable for single-family homes where there are sufficient recent, similar sales (comparables) to compare against the subject property.
People Also Study
Related Wisconsin Questions
- The Wisconsin sales comparison approach adjusts comparable sales for differences from the subject. An adjustment for a bathroom the comparable lacks is a:Property Valuation
- A Wisconsin appraiser's final value conclusion for a home is $285,000. The sales comparison approach indicated $282,000, the cost approach $290,000, and no income approach was used. This reconciliation gives greatest weight to:Property Valuation
- In the sales comparison approach, Wisconsin appraisers make adjustments when:Property Valuation
- A Wisconsin appraiser who finds that the comparable sales indicate a lower value than the cost approach should generally:Property Valuation
- A Wisconsin home appraised at $310,000. The comparable sold for $325,000 but has a 2-car garage worth $8,000 that the subject lacks. After adjustment, the comparable indicates a value of:Real Estate Math
Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Math Concepts
Study This Topic
Practice More Wisconsin Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wisconsin Quiz →