Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

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Which approach is most used for appraising single-family homes?

Income approach
Sales comparison approach
Cost approach
Capitalization rate method

The correct answer is: Sales comparison approach

The sales comparison approach is most commonly used for appraising single-family homes because it compares the property to similar homes in the same area that have recently sold. This approach takes into account factors such as location, size, and features to determine the value of the home. The other options may be used for other types of properties, but they are not as commonly used for single-family homes. The income approach is typically used for commercial properties, the cost approach is used for new or unique properties, and the capitalization rate method is used for income-producing properties.