Question

An appraiser used 80% of the value arrived at by the market comparison approach, 20% of the value arrived at with the cost approach, and 0% of the value by the income approach. This approach to value is known as _.

Answer 1

The approach to value described in the question is known as the weighted average approach. It assigns different weights to various valuation methods based on their significance and reliability.

Step-by-step explanation:

The approach to value described in the question is known as the weighted average approach. In this approach, the appraiser assigns different weights to various valuation methods based on their significance and reliability. In this case, the market comparison approach is given more weight at 80%, followed by the cost approach at 20%, and the income approach at 0%. This approach ensures that the final value considers multiple perspectives but gives more importance to the market comparison method.