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:

CDI

Consumer Decision Interface; typically referring to tools or platforms that assist consumers in making purchasing choices. If meant as "Category Development Index," it's a measure of the sales performance of a category of goods within a specific market segment.

Market Segment

A portion of a larger market that is categorized based on shared characteristics, needs, or preferences of its members.

Corporate Level

Pertains to the strategic scope of an organization as a whole, encompassing all its divisions and products, and focusing on overall direction and goals.

Product Modification

A strategy where a company makes minor changes or improvements to a product to increase its appeal or to reach a different market segment.