What is the first step in the sales comparison approach?

• A. Find recent comparable sales and listings
• B. Verify data
• C. Select relevant units of comparison
• D. Reconcile final value

Answer: (A)

The main idea behind the sales comparison approach is to anchor your value in real market evidence from properties that are truly like the subject. The first step is to locate recent comparable sales and current listings because this builds the market baseline: it shows what similar properties have sold for recently and what buyers are currently paying or asking for in today’s market. This pool of data provides a concrete starting point for the analysis and helps ensure your value opinion reflects current conditions rather than guesswork. Once you have these comparables, you verify the data for accuracy, then identify the most relevant units of comparison (the specific features and characteristics that matter for the subject), make appropriate adjustments for any differences, and finally reconcile to a final value. Skipping straight to adjustments without grounding the analysis in recent, comparable evidence would detach the estimate from actual market behavior.