Dick and Jane are considering the purchase of a 2,500 square foot 4 bedroom, 2 bath house with an attached two-car garage on a three-quarter acre lot. The house is located in the prestigious Iwannabbie school district. Houses in this district range in size from 3 bedrooms up to 5 bedrooms, and sales occur fairly frequently. The most appropriate appraisal would be the:

A. income approach
B. comparative sales approach
C. replacement cost approach.

Correct Answer: B

The house is in a residential community with what appears to be a large number of houses that would be close substitutes. The comparative sales approach would be the most appropriate.