Appraiser Louis finds a property located in the same neighborhood as the appraised property, and wants to use it as a comparable

Question

1 month ago

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Appraiser Louis finds a property located in the same neighborhood as the appraised property, and wants to use it as a comparable

sale. The comparable has more bedrooms than the subject, one less bath, and one less garage. The appraiser will have to subtract the extra bedrooms from the comparable, add a bathroom to the comparable, and add a garage to make the properties equal. What type of approach to value has Louis utilized?

Social Studies

1 answer:

Anni [1.2K] · Answer 1 · 2026-02-21T06:57:23+03:00

Response:

The method employed by Louis is the Sales Comparison Approach.

Sales Comparison Approach enables appraisers to provide an estimated value for a property by contrasting it with similar properties, known as comparable sales. The prices of these comparable properties assist in determining a suggested value range of the property on sale. The Cost approach typically evaluates the market's price for a property based on its construction or depreciation state. The Income Capitalization Approach focuses on the anticipated profits the property may yield in the future. Therefore, it is clear that appraiser Louis is utilizing the Sales Comparison Approach.