What is the standard method used to value residential property in Wisconsin?

The sales comparison approach is the standard method used to value residential property in Wisconsin because it is based on the principle of substitution, which asserts that a buyer would not pay more for a property than the cost of a comparable substitute property. This approach involves analyzing recent sales data of similar properties in the area to derive an accurate value for the property being assessed.

In Wisconsin's residential real estate market, assessors typically look for homes that have similar characteristics—such as size, location, age, and condition—and adjust for any differences to come up with an equitable value. This method reflects current market trends and conditions effectively, making it a preferred choice for residential property valuation.

While the cost approach and income approach are also important methods of appraisal used in specific contexts (like valuing unique properties or rental properties, respectively), they are not the standard for residential properties in general. The market approach is a term that can often encompass sales comparison but is less specific than the established terminology used in the field, which makes the sales comparison approach the precise answer for valuing residential property in Wisconsin.