Residential - sales comparison

Residential income, office and retail - income approach

some specialty proerties require the cost approach!

It has little to nothing to do with preference... generally residential properties are appraised based on sales comparisons. Sales comparisons are also how we as agents "value" properties to list.

Did you copy & paste this from a text book?

Residential uses the sales comparison approach.

The Sales Approach is most commonly used in our business. Cost may be useful to an insurance company and income if it's income producing property like commercial.  

Niles, AKA Ken Jones, said it all perfectly as I would have expected.

Residential - sales comparison

Residential investments - income approach

Those are the only two I've ever used personally, #1 being the vast majority in my experience.

Use the comps.

I agree wtin Nina Hollander and Wayne Martin .  Income approach is something an accountant would work on when it comes to commercial real state especially in a high rise building or a retail center.  A

So many good answers. I ageee with all of them.

Not an appraiser so my opinion is only an opinion.

The approach used should reflect the intended use of the property. I have seen appraisers use more than one approach and then come up with a valuation that most reflects the buyer's intentions for the property. i.e. a single family home being purchased as a pricipal dwelling vs. a 10 unit building being purchased as an investment.

if it's a multi family, the income approach and sales comparison work well...

cost approach for a new or very young home .... 

resale home would be sales comparison....

If it is not clear, I use all three or two or a combo....

The appraisers in our neck of the woods use the sales comparison approach.

As a former appraiser, it depends on the circumstances and need.

Cost approach is used for new construction or restoration to a home as the result of fire, storm or other peril.  Must be proficeint in cost of materials, labor, etc.

Income approach is used for any type of rental... residential or commercial.

Sales approach is the standard and preferred method for Realtors and is based on area or neighborhood home sales. 

Cheers!

I only do sales comparisons.

I like sales comparison

Comparable sales

Residential = sales comp, 99% of the time, unless it's a unique or "non-conforming" property or not living up to it's highest and best use (think 2 bedroom home in the middle of a commercial district.  Out here we had one lady who refused to sell her home, on the side of a freeway, and kept it until she died.  After she died, her kids sold it for WAY more than it was worth, as it was the last parcel needed to build a shopping center.

Looks like you received the right answer.

It is not what I prefer. It is what the custom is and what the lender orders.  Sales comparison is the standard in residential sales. 

I am not an appraiser, but the different methods are used when it makes most sense e.g. residential based on comps; investment based on income and perhaps some new construction or renovation based on cost.

It depends what you are appraising. For residential real estate the sales approach is the only true approach to arrive at current market value.  For income/multy/commercial I do both the sales and income approaches. 

I am not an appraiser

Depends on the type of property. Wayne Martin answered it well.

Depends on the purpose, we use all three.

• Comparison for Real Estate sales
• Cost for Damage Appraisals
• Income for Timber.

I do only residential- 

the sales comparison approach

It's not a question of what we prefer. The method used depends upon the type of property being valued in the appraisal.

Wayne Martin and Barbara Todaro gave great answers. 

totally depends on what is being appraised.  Business= income, residential comparison, school or church= cost are the most commonly used methods to my knowledge.  Once in a while is a very unique property where comparison alone isn't possible. (while I am not an appraiser I have taken the classes)