Sales Comparison Approach
One of the methods that an appraiser has to help form their opinion on property value is the “Sales Comparison” approach. This is a common method used often in residential appraisals as well as vacant land property appraisals.
One of the key components of this approach is the identification and use of “comparable sales.” A supportable and accurate appraisal relies on the identification, documentation, and analysis of sales that have occurred recently in the market that are reasonably similar and can be compared to the subject property being appraised. The appraiser, with a solid understanding of the property characteristics that drive value, will evaluate each comparable sale and estimate adjustments to the sale price. These adjustments are meant to adapt the documented sale price to estimate the market value of the subject property.
Whether it’s a small lot or a large timberland property, Steigerwaldt’s appraisal team has the expertise to apply this approach to value to provide reliable opinions on property values.
-Tom Hittle, Senior Vice President: Project Coordination/Client Services