Wisconsin Real Estate Salesperson Exam — All Questions
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1 questions
Valuation and Market Analysis
Which approach to value is generally the most reliable for appraising a single-family, owner-occupied home?
- a.The sales comparison approach✓
- b.The income approach
- c.The gross rent multiplier method
- d.The cost approach only
The sales comparison approach compares the subject property to recently sold, similar properties and adjusts for differences. Because ample comparable sales usually exist for residential homes, it best reflects what a buyer would pay. The income approach suits rental and investment property, while the cost approach is most useful for new or special-purpose buildings.