Final answer:
To appraise a 20-year old residence, an appraiser would most likely use the Comparative Market Analysis method, within the sales comparison approach, which involves comparing the residence to similar recently sold properties. Other methods such as Cost Approach or Income Approach could also be used under certain conditions.
Step-by-step explanation:
To estimate the value of a 20-year old residence, an appraiser would primarily use the Comparative Market Analysis (CMA) method, which is a part of the sales comparison approach. This method involves comparing the subject property to similar properties that have recently sold in the same area, adjusting for differences in features, size, and condition. The recent sales figures provide a basis for estimating the current value of the residence. However, depending on the condition of the building and the availability of data, other methods like the Cost Approach or Income Approach could be used as well, especially if the property has rental income potential or requires significant restoration.
Another possibility is the Depreciated Replacement Cost method within the Cost Approach, particularly if the property is unique and there are not enough comparable sales. This method estimates the cost to replace the structure with a similar one, then subtracts depreciation due to physical wear and tear, functional, or economic obsolescence.