Question

What are the three appraisals USPAP recognizes?

a) Cost Approach, Sales Comparison Approach, Income Approach
b) Market Approach, Cost Approach, Financial Approach
c) Replacement Approach, Reproduction Approach, Valuation Approach
d) Comparative Approach, Depreciation Approach, Equity Approach

Answer 1

USPAP recognizes three appraisal methods: Cost Approach, Sales Comparison Approach, and Income Approach, used to establish the value of real property.

Step-by-step explanation:

The three appraisals that USPAP (Uniform Standards of Professional Appraisal Practice) recognizes are a) Cost Approach, Sales Comparison Approach, and Income Approach. These are widely accepted methods for determining the value of real property. The Cost Approach is based on the assumption that a potential investor would not pay more for a property than it would cost to build an equivalent. The Sales Comparison Approach involves comparing the subject property to similar properties that have recently sold in close proximity. Lastly, the Income Approach is used primarily for rental properties and is based on the present value of future benefits derived from property ownership.