Property Valuation
Recently sold properties similar to the subject property, used in the sales comparison approach to estimate market value.
Comparable sales, or 'comps', are properties that are similar to the property being appraised in location, size, condition, and features, and that have sold recently in arm's-length transactions. Appraisers adjust the sale prices of comparables to account for differences: if a comp has a feature the subject lacks (like a garage), the comp's price is adjusted downward. The adjusted prices of the comparables are then reconciled to arrive at an estimate of the subject property's value.
Exam Tip
Adjustments are always made to the comparable, not to the subject property. Remember: 'CIA' — Comparable Is Adjusted.
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Property Valuation
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NY Real Estate Property Valuation
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