In the sales comparison approach, which step involves comparing to the subject property and adjusting for differences?

• A. Compare to subject property and adjust for difference
• B. Verify data
• C. Find recent comparable sales
• D. Reconcile into a single value or range

Answer: (A)

The main idea here is to make market data truly comparable to the subject property by adjusting for differences. In this step, you look at each comparable property and compare it directly to the subject—size, age, condition, layout, features, lot size, location, and any other factors that affect value. For every difference, you quantify how much the sale price would change if the comparable had the subject’s characteristics. Doing this creates adjusted prices that reflect what each comparable would be worth if it were more like the subject. These adjusted figures then form the basis for estimating the subject’s value.

Verifying data is about ensuring the accuracy and reliability of the information used. Finding recent comparable sales is about selecting which comps to analyze before adjustments. Reconcile into a single value or range happens after adjustments, when you synthesize all the data into one estimate.