Discuss the “Comparison” or “Comparable” type of approach to value property and what type of property?

Discuss the “Comparison” or “Comparable” type of approach to value property and what type of property?

Expert Solution

Comparable method to value real estate is the most preferred method to valuation of real estate.It depends upon recent sales of similar real estate properties as the one which is being appraised. The property which is being compared should also fall in the same locality and current use.

This approach is one of the three method used in valuing real estate properties. This approach uses sales data of similar properties to determine the market value of the property and it uses at least three recently sold and similar properties which should be used by the appraiser, when determining the current value of the property.

The property can be used for certain appraisal adjustment factors like compatible qualities, ownership interest, market conditions and location. So it is a flexible approach to value property with other properties which fall in same locality and currently used.

jeff jeffy answered 1 year ago

Use the following information to answer questions 44-46 using the sales comparison approach. A comparable property...

Use the following information to answer questions 44-46 using the sales comparison approach. A comparable property sold 7 months ago for $231,200. The adjustments for the various elements of comparison have been calculated as follows: Location: +4.5 % Market conditions: -0.54% per month Physical characteristics: + $4,500 Financing terms: -$3,500 Nonrealty items: +$5,200 Conditions of sale, Legal characteristics, Use: 0 What is the value of the market conditions adjustment?* None of the above -$14,800 -$8,600 -$1,200 6 points Question 45...

You are trying to value a company using the relative valuation approach. Suppose comparable companies are...

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The sales comparison approach is being used to obtain an indication of the market value of...

The sales comparison approach is being used to obtain an indication of the market value of a single family residence. The subject property is compared to the four properties that sold during the past year in the same neighborhood. Relevant characteristics of the subject and the comparables are presented below. Subject: current sale, waterfront, 1 car garage, average condition, 2,300 square feet. Sale 1: sold last week, waterfront, 1 car garage, average condition, 2,600 square feet, for $350,000. Sale 2:...

1. The sales comparison approach is being used to obtain an indication of the market value...

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Discuss the “Comparison” or “Comparable” type of approach to value property and what type of property?

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