Which appraisal method is most appropriate for a 25-year-old house in a 30-year-old neighborhood?

The sales comparison approach is the most appropriate method for appraising a 25-year-old house in a 30-year-old neighborhood because it focuses on the market's actual performance by comparing the property in question with similar properties that have recently sold in the same area. This method leverages real-world data, which is particularly useful in residential appraisals where the market dynamics are influenced by the buying and selling behavior in the neighborhood.

Given the age of the house and the neighborhood, the sales comparison approach takes into account the current market conditions and how comparable properties in similar situations have been valued, providing a reliable estimate based on what buyers in that area are willing to pay.

While the cost approach estimates value based on the cost to replace or reproduce the home, it might not accurately reflect market demand, especially in a neighborhood where older homes may have distinct market values that differ significantly from their replacement costs. The income approach is more relevant for properties that generate rental income, such as commercial real estate, and is not suitable for typical residential properties. The investment approach generally caters to properties viewed primarily as investment opportunities, which may not apply to a single-family residence in a neighborhood setting.

Thus, using the sales comparison approach allows an appraiser to establish a value