The Sales Comparison Approach

2nd step of elements of comparison

Conditions of sale

1st step of elements of comparison

Financing terms and cash equivalency

4th step of elements of comparison

Location

3rd step of elements of comparison

Market conditions at time of contract and closing

5th step of elements of comparison

Physical characteristics

Each appraisal approach relies on something to help determine a property's value. What does the sales comparison approach rely upon

The sales comparison approach relies on comparable properties to help determine adjusted market price.

Bracketing

a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject

The sales comparison approach relies on comparable properties to help determine this:

adjusted market price

What is an element comparison

are used to analyze both the locational and physical characteristics of property and transaction differences of the comparables. They explain why different prices are paid for comparables. The qualitatively side of comparison.

What is an unit comparison

may be price per square foot, per room, per apartment unit, per acre, etc. The quantitatively side of comparison.

correlation process

the most weight may be given to one or two of the sales that are presented, or equal weight may be given to all.