Question of the Day

Mrs. Frankel, an appraiser, is appraising a single-family residence for which she has located six closely comparable properties, all sold within the past six months. The subject property is rented for $2000 per month. It is a custom-built home, approximately three years old. Mrs. Frankel would probably give the most weight in her final estimate of value to which of the following appraisal methods?

Explanation

Market data would be used because it is the most reliable indicator of a home's true value. Since it is a single-family residence rather than a multi-unit investment property, the fact that it is rented, as well as the amount of rent, is irrelevant to the calculations.

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