Which appraisal approach would likely use a spreadsheet analysis for comparison?

Which appraisal approach would likely use a spreadsheet analysis for comparison?

• A. Income Approach
• B. Sales Comparison Approach
• C. Cost Approach
• D. Financial Assessment Approach

Answer: (B)

The Sales Comparison Approach is the correct answer in this context because it relies on comparable properties to ascertain the value of a subject property. This approach involves analyzing data on recently sold properties that are similar in location, size, and features to the subject property. When performing this analysis, appraisers often compile information into spreadsheets, allowing them to systematically compare various aspects such as sale prices, square footage, and characteristics of the properties. The spreadsheet format facilitates the organization of this data, making it straightforward to assess value adjustments for differences in attributes among the properties being compared. In contrast, while the Income Approach also necessitates some level of calculation, it primarily focuses on the income generation potential of a property. This might involve projections and formulas centered around cash flow rather than direct comparisons to other sales, which do not lend themselves as easily to spreadsheet analysis for comparison. The Cost Approach, focused on estimating the cost to replace or reproduce a property minus depreciation, typically relies on construction costs rather than direct comparisons through spreadsheets. The Financial Assessment Approach could involve financial metrics but isn't specifically tied to property value comparisons in the way that the Sales Comparison Approach is. Hence, it would not typically utilize a spreadsheet for comparison in the same manner. For these reasons, the Sales

The Sales Comparison Approach is the correct answer in this context because it relies on comparable properties to ascertain the value of a subject property. This approach involves analyzing data on recently sold properties that are similar in location, size, and features to the subject property.

When performing this analysis, appraisers often compile information into spreadsheets, allowing them to systematically compare various aspects such as sale prices, square footage, and characteristics of the properties. The spreadsheet format facilitates the organization of this data, making it straightforward to assess value adjustments for differences in attributes among the properties being compared.

In contrast, while the Income Approach also necessitates some level of calculation, it primarily focuses on the income generation potential of a property. This might involve projections and formulas centered around cash flow rather than direct comparisons to other sales, which do not lend themselves as easily to spreadsheet analysis for comparison.

The Cost Approach, focused on estimating the cost to replace or reproduce a property minus depreciation, typically relies on construction costs rather than direct comparisons through spreadsheets.

The Financial Assessment Approach could involve financial metrics but isn't specifically tied to property value comparisons in the way that the Sales Comparison Approach is. Hence, it would not typically utilize a spreadsheet for comparison in the same manner.

For these reasons, the Sales