While there are several conventional approaches used to estimate the market value of real estate, which of the following is typically considered the most reliable approach?
A) Income approach
B) Sales comparison approach
C) Cost approach
D) Investment approach

Question

Quizplus · Accepted Answer

The sales comparison approach is typically considered the most reliable approach as it involves comparing the property being valued to similar properties that have recently sold in the same area. This approach takes into account market conditions, supply and demand, and the physical and locational characteristics of the property. The income approach and cost approach can be less reliable as they rely on projections and assumptions, such as future income or replacement costs. The investment approach is a broader approach that considers the entire investment potential of a property, including the potential for income and appreciation, and is not typically used for simple market valuations.

While There Are Several Conventional Approaches Used to Estimate the Market