A home of 2,200 sq ft, which sold for $440,000, was identified as a comparable sale during the valuation of a 2,000 sq ft house by the appraiser. Although a comparable property sold for $350,000, it features a swimming pool valued at $15,000, which the subject property does not have. Additionally — the appraiser verifies through public records and listing images that no other significant functional or physical differences are present.
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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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