What does the appraiser focus on when doing a Sales Comparison Approach?

• A. Age
• B. Size
• C. Market Demand
• D. Location

Answer: (C)

In the Sales Comparison Approach, the focus is on market demand—what buyers in the current market are willing to pay for similar properties. The appraiser looks at recent, arm’s-length sales of comparable homes in the area to gauge what the market is valuing these properties at right now. Those sale prices reflect prevailing demand and conditions, providing the best evidence of value for the subject property. Differences between the subject and the comparables—like size, age, or location—are then adjusted to make a fair comparison, but the driving factor remains the market’s willingness to pay.