Which appraisal method would not be appropriate for a standard tract home?

Study for the ASU REA380 Exam 2. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for success!

The unique comparison approach is not suitable for valuing a standard tract home because this method is typically employed for properties that are one-of-a-kind or have special characteristics that make them difficult to evaluate using standard methods. Tract homes, on the other hand, are part of a development with similar, mass-produced features and characteristics, making them more comparable to other homes in the neighborhood.

In contrast, the sales comparison approach is ideal for standard tract homes, as it looks at recent sales of similar homes to establish a market value based on what buyers are willing to pay. The income approach is generally used for investment properties that generate rental income, so while not typically used for standard homes, it is still more applicable than the unique comparison approach. The cost approach, which estimates value based on the cost to replace or reproduce the home minus depreciation, is also relevant for tract homes when considering construction and land value. Thus, the unique comparison approach lacks the necessary applicability for standard tract homes, making it the least appropriate option.

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