Sales Comparison Approach
An appraisal method that estimates value by comparing the subject to recent sales of similar properties and adjusting the comparables toward the subject.
Quick flashcard
What does Sales Comparison Approach mean on the Texas real estate exam?
Answer: An appraisal method that estimates value by comparing the subject to recent sales of similar properties and adjusting the comparables toward the subject.
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Sales Comparison Approach definition
The sales comparison approach estimates value by analyzing recent sales of comparable properties and adjusting their prices for differences from the subject. Adjustments are always made to the comparable, never to the subject.
It is the primary method for residential property because similar homes usually sell often enough to provide reliable comparables.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Value & Appraisal (11 of 80 National)
From definition to recall
See this term inside a real exam question.
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