82.9k views
0 votes
The direct sales comparison (market data) approach would be MOST appropriate for establishing the value of a:______

A. 5-year-old single-family house
B. 10-unit apartment building
C. 25-year-old church
D. retail commercial property

1 Answer

3 votes

Final answer:

The direct sales comparison approach is best used for a 5-year-old single-family house because ample market data is available for comparison. The correct option is A. 5-year-old single-family house

Step-by-step explanation:

The direct sales comparison (market data) approach is most appropriate for establishing the value of a property by comparing it to similar properties that have recently been sold in the same market. This appraisal method relies heavily on current and historical sales data to determine a property's value.

When considering the provided options, the direct sales comparison approach would be most suitable for a 5-year-old single-family house.

Single-family homes are commonly bought and sold in the real estate market, and sufficient comparable sales data is usually available to make this approach effective.

On the other hand, a 10-unit apartment building, a 25-year-old church, and a retail commercial property may require additional methods such as the income approach or cost approach due to their unique characteristics and the potential for income generation. The correct option is A. 5-year-old single-family house

User Rakholiya Jenish
by
8.0k points