The “Sales Comparison Approach” is one out of three methods that can be used by an appraiser to estimate an opinion of value for your property. This method is typically the most accurate method used to determine the value of owner occupied, single-family homes.
The sales comparison approach section of the appraisal report is a comparison chart of your property and the most recent sales in your neighborhood that are the most similar to your property. These similar, recent sales are also known as comparable sales (comps). Through thorough research and analysis, the appraiser selects the most appropriate comps for your property based on the property characteristics in the left column of the comparison chart. These characteristics include but are not limited to, location, style, age, condition, and gross living area. When possible the comps are selected from within your subdivision or no more than 1 mile from your property, and will be within the neighborhood boundaries noted in the neighborhood section. The selection of comps may vary depending on the availability of recent sales similar to your home and other market factors.