An appraiser is valuing a 2,000 sq ft home and finds a comparable sale of a 2,200 sq ft home that sold for $440,000. A comparable property sold for $350,000 but has a swimming pool worth $15,000 that the subject property lacks. The appraiser also confirms via public records and listing photos that no other functional or physical differences exist. A subject property has a 3-car attached garage.
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The appraiser reconciles these values into a single opinion of value, considering the quality and quantity of the data. This includes confirming the sale price, terms, and conditions of the transaction with reliable sources such as buyers, sellers, or brokers. The process involves identifying comparable properties, analyzing their similarities and differences relative to the subject property, and making adjustments to account for these differences. This approach provides a systematic way to estimate a property’s value by analyzing recent sales of comparable properties. All of the comparables must be adjusted accordingly The appraiser uses less current market data
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Other Appraiser Exam Topics
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Why Does the Sales Comparison Approach Matter for Property Transactions?
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