The comparable sales method of property valuation involves:
Correct Answer
B) Analysing recent sales of similar nearby properties and adjusting for their differences
The comparable sales (or direct comparison) method estimates a property's market value by analysing recent sales of similar properties in the same or comparable locations, adjusting for differences in features, size, and condition.
Why This Is the Correct Answer
The comparable sales method finds market value from what buyers have actually paid for similar properties recently, adjusting each sale for differences in size, condition, features, location and timing.
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