Exam 8: The Sales Comparison Approach

Sales data published and/or available on line for the use of subscribing appraisers is often generated by cooperating lenders and appraisers.

A neighborhood sales study finds selling prices of $150,000, $157,500, $159,000, $162,000, and $164,000 for homes similar to the subject property. The median price of this sample is $158,500.

USPAP requires that any listing or sale of the subject property around the date of value be considered in the appraisal.

Data resources on the internet provide general data on the economy and regulatory information of use to the appraiser.

A sale between the property owner and a tenant can be assumed to be an open market transaction.

The first step in the sales comparison approach is to research comparable sales.

The sales comparison approach is based on the principle of substitution.

Even though listings and offers may be available, they are of no significant use to an appraiser.

In the analysis of sales transaction data, the actual date that the sale price was agreed upon is the theoretical date of sale.

The sales comparison approach has no statistical connections.