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scoray [572]
4 years ago
8

Appraiser Louis finds a property located in the same neighborhood as the appraised property, and wants to use it as a comparable

sale. The comparable has more bedrooms than the subject, one less bath, and one less garage. The appraiser will have to subtract the extra bedrooms from the comparable, add a bathroom to the comparable, and add a garage to make the properties equal. What type of approach to value has Louis utilized?
Social Studies
1 answer:
Marat540 [252]4 years ago
7 0

Answer:

The approach to value that Louis has utilized is the Sales Comparison Approach.

Explanation:

Sales Comparison Approach allows appraisers to state an approximate value of a property they are selling by comparing the object property with similar properties, called comparable sales. <u>The sale prices of the properties that are considered more comparable help to find a range for the approximate value for the property on sale. </u>The Cost approach basically <u>analyzes the price that the market can set for a property</u> according to the construction or depreciation thereof. The Income Capitalization Approach primarily <u>examines the future profits the property may generate.</u> That’s why it is evident that <u>appraiser Louis is using the Sales Comparison Approach.</u>

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