Which appraisal approach is most appropriate for valuing a single-family residential home?

THREE APPRAISAL APPROACHES: (1) SALES COMPARISON APPROACH (market data approach): Compares the subject to recently SOLD similar properties (comparables/'comps'), adjusting for differences (size, location, condition, features); the PRIMARY method for SINGLE-FAMILY RESIDENTIAL; (2) COST APPROACH: Value = land value + cost to rebuild the improvements (new) minus depreciation; best for NEW or SPECIAL-PURPOSE properties (schools, churches) with few comparables; (3) INCOME APPROACH: Value based on the income the property generates (used for INCOME-PRODUCING properties — apartments, commercial); uses capitalization (Value = Net Operating Income ÷ Cap Rate); for RESIDENTIAL homes, the sales comparison approach is most appropriate and most heavily weighted because there are usually ample comparable sales and homes are bought for use, not income; appraisers may use multiple approaches and reconcile them, but the sales comparison approach dominates for residential; this is core national exam valuation content.