In the market data approach, what are the comparable properties commonly called?

In the market data approach, what are the comparable properties commonly called?

• A. Comps
• B. Listings
• C. Leases
• D. Appraisals

Answer: (A)

In the market data (sales comparison) approach, the properties used for comparison with the subject property are called comps. These are the properties that are most similar in location, size, age, condition, and features, and their recent sale prices provide the benchmark for estimating value. The appraiser adjusts the sale prices of the comps to account for differences and derives a value range for the subject. Listings are properties currently for sale and don’t provide actual sale evidence. Leases refer to rental data used in income-based valuations, not the sales data used here. Appraisals are the final report or analysis the appraiser prepares, not the data points used for comparison.

In the market data (sales comparison) approach, the properties used for comparison with the subject property are called comps. These are the properties that are most similar in location, size, age, condition, and features, and their recent sale prices provide the benchmark for estimating value. The appraiser adjusts the sale prices of the comps to account for differences and derives a value range for the subject.

Listings are properties currently for sale and don’t provide actual sale evidence. Leases refer to rental data used in income-based valuations, not the sales data used here. Appraisals are the final report or analysis the appraiser prepares, not the data points used for comparison.