If All Appraisal Methods Are Appropriate for Use in Valuing

question 13

Multiple Choice

If all appraisal methods are appropriate for use in valuing a particular property, there is a clear order of preference that real estate professionals adhere to. Which of the following depicts the preferred order, with the most preferable approach being listed first and the least preferable listed last?

• A) Sales comparison approach, cost approach, income approach
• B) Income approach, Sales comparison approach, cost approach
• C) Cost approach, income approach, sales comparison approach
• D) Sales comparison approach, income approach, cost approach

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Definitions:

Cash Dividends

A cash distribution of profits by a corporation to its shareholders.

Investment Revenue

Income generated from investing capital, such as dividends, interest, or profits from asset sales.

Intangible Investments

Investments made in non-physical assets, such as patents, trademarks, and copyrights, that a company might make to boost its value or productivity.

Held-to-Maturity Debt Securities

Debt instruments that a company intends and is able to hold until they mature, recorded at amortized cost in the company's financial statements.