What would best help an appraiser determine a home value using the sales comparison approach?

What would best help an appraiser determine a home value using the sales comparison approach?

• A. Recent sales similar to, and in close proximity to, the subject
• B. Current listings within the neighborhood
• C. Market trends in the area
• D. Local tax assessments

Answer: (A)

Using recent sales of properties that are similar to the subject property and located in close proximity is fundamental in the sales comparison approach to appraising a home’s value. This method relies on analyzing comparable properties, also known as "comps," that have recently sold in order to establish a baseline value for the home being appraised. The rationale is that properties with similar characteristics—such as size, condition, and features—will generally sell for similar prices in the same market. Recent sales are particularly valuable because they reflect the current market conditions and buyer preferences, providing the most accurate representation of what buyers are willing to pay. This approach assumes that buyers will not pay significantly more for a property than the cost of purchasing a similar and nearby home. Consequently, the closer the comparison properties are in terms of physical and situational attributes, the more reliable the appraised value will be. While current listings can offer insight into the market, they do not provide definitive data on what buyers are actually willing to spend, as they might not yet have concluded a sale. Market trends can outline broader shifts in demand or price over time, but they do not pinpoint the specific value of a home. Local tax assessments can give an idea of property values, but they often lag behind

Using recent sales of properties that are similar to the subject property and located in close proximity is fundamental in the sales comparison approach to appraising a home’s value. This method relies on analyzing comparable properties, also known as "comps," that have recently sold in order to establish a baseline value for the home being appraised. The rationale is that properties with similar characteristics—such as size, condition, and features—will generally sell for similar prices in the same market.

Recent sales are particularly valuable because they reflect the current market conditions and buyer preferences, providing the most accurate representation of what buyers are willing to pay. This approach assumes that buyers will not pay significantly more for a property than the cost of purchasing a similar and nearby home. Consequently, the closer the comparison properties are in terms of physical and situational attributes, the more reliable the appraised value will be.

While current listings can offer insight into the market, they do not provide definitive data on what buyers are actually willing to spend, as they might not yet have concluded a sale. Market trends can outline broader shifts in demand or price over time, but they do not pinpoint the specific value of a home. Local tax assessments can give an idea of property values, but they often lag behind