Approaches to value
Sales comparison approach
Valuing a property against recent sales of similar properties
The primary approach for residential property. Comparables are adjusted for differences and the adjusted figures are reconciled into an indication of value. It rests directly on the principle of substitution.
How the exam asks about it
Adjustments are always made to the comparable, never to the subject: if the comparable is superior, subtract; if inferior, add.
Related terms
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