In the sales comparison approach to appraisal, adjustments for differences in features are made to which properties?
Correct Answer
B) The comparable properties only
In the sales comparison approach, adjustments are always made to the comparable properties, never to the subject property. If a comparable is superior to the subject in some feature, a negative adjustment is made to the comparable's price; if it is inferior, a positive adjustment is made. The goal is to estimate what each comparable would have sold for if it were identical to the subject property.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
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