Ken is an appraiser who was hired to appraise a single-family home. Ken's subject property is similar to many of the houses in the neighborhood since much of the neighborhood was built around the same time. Why would the sales comparison approach be the most effective valuation method for Ken? ○ Since the cost to rebuild the property can easily be determined, the sales comparison approach should be used, Since the property has the potential to be rented out, the sales comparison approach should be used. Residential properties are typically valued using the sales comparison approach, and Ken will most likely have several comparable properties to use to value the subject property. The cost approach should be used by Ken rather than the sales comparison approach.

Ken is an appraiser who was hired to appraise a single-family home. Ken's subject property is similar to many of the houses in the neighborhood since much of the neighborhood was built around the same time. Why would the sales comparison approach be the most effective valuation method for Ken? ○ Since the cost to rebuild the property can easily be determined, the sales comparison approach should be used, Since the property has the potential to be rented out, the sales comparison approach should be used. Residential properties are typically valued using the sales comparison approach, and Ken will most likely have several comparable properties to use to value the subject property. The cost approach should be used by Ken rather than the sales comparison approach.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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