The Sales Comparison Approach is also known as what?

The Sales Comparison Approach, commonly referred to as the Comparable Sales Approach, is a method used by appraisers and real estate professionals to determine the value of a property. This approach assesses the value based on the sale prices of similar properties in the same area that have recently sold. By analyzing these comparable sales, an appraiser can establish a market value for the property being evaluated.

This method is particularly effective in active real estate markets where there are numerous similar properties available for comparison. Adjustments are often made for differences between the subject property and the comparables, such as size, condition, and location. Thus, the use of the term "comparable" in the name highlights the reliance on similar sales to establish a relevant market value, making it a crucial concept for anyone involved in residential real estate transactions.

Other terms, such as the Market Cost Approach, Value Comparison Method, or Standard Appraisal Approach, do not accurately encapsulate the specific method and focus utilized in the Sales Comparison Approach. However, "Comparable Sales Approach" distinctly portrays the emphasis on comparing similar properties to ascertain value.