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Sales Comparison Approach
Estimating property value by comparing to recently sold similar properties (comps)
Best properties for Sales Comparison Approach
Single-family residential homes in active markets
Comps
Recently sold comparable properties used to estimate market value
CBS
Comp Better, Subtract (you subtract value if the comp is better)
CIA
Comp Inferior, Add (you add value if the comp is worse)
Adjustments in Sales Comparison Approach
When the comp differs from the subject in features like size, condition, or amenities
Adjustment for garage
Subtract the value of the garage from the comp (CBS)
Adjustment for lot size
Add value to the comp to adjust for the smaller lot (CIA)
Reliability of Sales Comparison Approach
Because it's based on actual market behavior and recent sales data
Goal of adjustments in Sales Comparison Approach
To make the comp's features match the subject so you can estimate its value accurately