NCh3 methods Of Estimating Value And Broker Price Opinions

Question 1

This approach to appraisal is primarily used in residential appraisals, and involves comparisons with known sales in the same area where the appraiser should have 3 to 5 arm’s-length transactions, no more than six months old

Answer 1

Market data approach

Question 2

This approach to appraisal is used for unique properties, such as churches or government buildings, and also use when there are no comparables for a particular property

Answer 2

Cost approach

Question 3

This approach to appraisal is used for income producing properties

Answer 3

Income approach