An appraisal usually contains three approaches to valuation.Which of the following is NOT one of those approaches?

Question

Quizplus · Accepted Answer

The Ratio Approach is not one of the three approaches to valuation. The correct approaches are the Market Approach, the Cost Approach, and the Income Approach. The Market Approach involves comparing the subject property to similar properties in the same area that have recently sold. The Cost Approach involves determining the cost to replace the subject property if it were destroyed and then subtracting any depreciation. The Income Approach involves calculating the potential income that the property could generate and then using that to determine its value.

An Appraisal Usually Contains Three Approaches to Valuation