Question

When appraising a single-family residence, which factor is least important to the value?

Selections

• A. Location

• B. Comparable price in the same neighborhood

• C. Comparable rent

• D. Living square footage of the property

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Answer: C

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5 Keys Summary

1. Comparable rent is generally the least important factor when determining the market value of a single-family residence.

2. The calculation of comparable rent falls under the Income Approach to value, which is primarily used for income-producing properties, such as apartment buildings.

3. For residential 1-to-4-unit properties, the Sales Comparison Approach is considered the most popular and reliable appraisal method.

4. This reliable approach relies heavily on comparing the recent sales price of similar homes and analyzing living square footage.

5. Factors such as location and neighborhood comparable prices are fundamental elements that drive and determine the value of a single-family home.

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