Which method is typically used to assess residential properties?

The method that is typically used to assess residential properties is based on recent comparable sales. This approach, known as the sales comparison approach, involves analyzing sales of similar properties in the same vicinity that have recently sold. By comparing attributes such as size, condition, location, and features, assessors can determine a fair market value for the property in question.

This methodology is particularly effective for residential properties because these markets tend to be influenced heavily by buyer and seller activity, making recent sales of like properties the most relevant data. This approach also benefits from the timeliness of the sales data, which reflects current market conditions, rather than older historical data or projected income, which may not accurately portray the current value of a residential property.

Other methods mentioned, while valuable in certain contexts, are not primarily used for assessing residential properties. For instance, using projected income tends to be more applicable for rental or commercial properties, where income potential is a critical valuation factor. Historical sales data can provide context but may not accurately reflect current market trends. Reliance solely on appraisal reports does not consider the dynamic nature of the market, as these reports may be based on past data and assumptions that might not be valid at present.