California Real Estate Salesperson Exam Practice – Quesiton 9

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Question

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

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Selections

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• A. Location

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• B. Comparable price in the same neighborhood

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• C. Comparable rent

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• D. Living square footage of the property

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Answer: C

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5 Keys Summary

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

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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.

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

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

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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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