It May Be Appropriate for a Real Estate Professional to Utilize

question 12

Multiple Choice

It may be appropriate for a real estate professional to utilize different approaches for estimating the market value of a property depending upon the particular property type and use. Which of the following approaches would be most applicable when considering the valuation of retail office space (i.e., which approach would receive the most weight in the valuation process) ?

• A) Income approach
• B) Sales comparison approach
• C) Cost approach
• D) Investment approach

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Definitions:

Decision Making Process

A methodical approach to making choices by identifying and evaluating options, considering their potential outcomes.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving judgment, risk assessment, and evaluation.

Subjective Probability

A type of probability derived from an individual's personal judgment about whether a specific outcome is likely to occur, without reliance on objective data.

Hard Facts

Objective, concrete information that can be quantitatively measured or verifiably observed.