Sales Comparison Approach
The sales comparison approach estimates value by analyzing sales (or offers) of comparable properties and adjusting to reflect differences relative to the subject. It relies on comparable market data and is commonly used where enough relevant transaction evidence exists.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Underwriting; acquisition; refinance
- Property types
- Residential; many commercial assets where comps exist
In practice
For thinly traded asset types, "comparable" selection and adjustment logic dominate the reliability of the conclusion.
Related terms
comparable salesadjustmentsmarket data
Valuation and Appraisal
- Appraisal Standards of Professional Practice
- Capitalization Rate (Cap Rate)
- Direct Capitalization
- Discounted Cash Flow (DCF) Analysis
- Income Approach
- Present Value (PV)
- Uniform Standards of Professional Appraisal Practice (USPAP)
General information, not legal, tax or financial advice.