California Real Estate Practice Exam

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What is the most reliable method for appraising single family homes?

Cost approach
Income approach
Sales comparison approach
Index method

The correct answer is: Sales comparison approach

The most reliable method for appraising single family homes is the sales comparison approach. This approach uses recent sales of similar properties in the area to determine the value of the home. This takes into account the current market conditions and the features and amenities of the home. The other options are not as reliable for single family homes. The cost approach may be more accurate for newer homes, but it does not take into account the current market conditions. The income approach is typically used for rental properties and may not accurately reflect the value of a single family home. The index method is used for valuing commercial properties and would not be suitable for appraising a single family home. Therefore, the sales comparison approach is the most reliable method for appraising single family homes.