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Basic Question 5 of 8
The disadvantage of relying solely on the comparative sales approach to valuing real estate is that the approach:
B. relies on selling prices, not asking prices.
C. requires estimating a market capitalization rate.
D. works well only for new or relatively new buildings.
A. does not reflect the fact that every property is in some respect unique.
B. relies on selling prices, not asking prices.
C. requires estimating a market capitalization rate.
D. works well only for new or relatively new buildings.
User Contributed Comments 2
| User | Comment |
|---|---|
| johntan1979 | D is for Cost Approach |
| schweitzdm | Thanks John |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
explain the investment characteristics of real estate investments
CFA® 2024 Level I Curriculum, Volume 5, Module 4.