California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 740

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

Cost approach

Income approach

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.

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Index method

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