Definition: The sales comparison approach estimates value by analyzing sales of comparable properties and accounting for relevant differences from the subject.
Example
A comparable sold for $300,000. If it lacks a feature worth $10,000 that the subject has, its adjusted indication is $310,000, assuming no other differences.
Keep the distinction clear
Adjust the comparable, not the subject. Use market-supported differences rather than automatically substituting construction costs.
Related terms
Comparable Property · Subject Property · Principle of Substitution
Keep studying
Comparable Sales: Adjustments and Weighted Values
References: California DRE: appraisal and valuation concepts
Pronunciation (US): SAYLZ kuhm-PAIR-uh-suhn uh-PROHCH (capitals show stress)
Pronunciation reference: Merriam-Webster
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