About This Chapter
Sales Comparison Approach in Real Estate - Chapter Summary
In this chapter on the sales comparison approach in real estate, you can get clarity on qualitative adjustments, such as its advantages and disadvantages. You can also learn why appraisers make adjustments when comparing sales to demonstrate the impact of special energy efficient items. By the time you finish the chapter, you should be able to do the following:
- Describe the comparative sales approach to property valuation
- Recount how appraisers choose properties for comparative real estate sales
- Explain quantitative adjustments used by real estate appraisers
- Provide examples of seller and financing concessions
- List energy efficient items in green buildings
- Outline value procedures in the sales comparison approach
- Discuss use of the sales comparison approach to reconcile the indicated value
You'll appreciate the deep knowledge of our instructors as they present information on the sales comparison approach in real estate. If you need assistance with a topic, you can use the Help feature to submit questions to experts. There's also a brief quiz provided to test your knowledge of each lesson.
1. The Sales Comparison Approach to Property Valuation
Residential real estate listing prices are often determined using the comparative sales approach. In this lesson, we will define and describe that method.
2. How to Identify Comparable Real Estate Sales
In order to conduct an effective appraisal the appraiser must identify appropriate comparable sales. In this lesson we will see what kind of factors appraisers use to choose properties as comparable sales for the evaluation of a home purchase.
3. Quantitative Adjustments of Real Estate Sales Comparisons
Appraisers use quantitative adjustments to find adjustment rates for differences in similar properties. These quantitative adjustments utilize several statistical methods to valuate these differences.
4. Qualitative Adjustments of Real Estate Sales Comparisons
Property appraisers use qualitative adjustments to find valuations for property. These qualitative adjustments are subjective and use different methods to estimate the property value. This lesson will go over these methods.
5. Real Estate Sales Comparisons: Seller & Financing Concessions
What are concessions in real estate? This lesson will cover why sellers offer concessions and how appraisers use them in arriving at a fair market value for their subject property.
6. Green Building Adjustments in Real Estate Sales Comparisons
This lesson provides examples of special energy efficient items in green buildings and explains why adjustments must be made by the appraiser during the sales comparison approach to reflect the impact on the sales price of the comparables.
7. Estimating Value Using the Sales Comparison Approach
Sales comparison approach is one method for valuing a property before listing it for sale. But how do you take into account all the different factors of comparable properties? This lesson goes over the different types of market multipliers, including PGIM, EGIM, NIM and cap rate.
8. Reconciling Indicated Value with the Sales Comparison Approach
Appraisal prices are not merely opinions; they must be reconciled. This lesson will cover ways that appraisers can justify and reconcile their adjusted sales price.
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Other chapters within the Ohio General Appraiser Exam: Study Guide & Practice course
- Real Property & Property Ownership
- Real Estate Value
- Government Powers in Real Estate
- Surveying Property in Real Estate
- Building Components & Structures
- Liens & Encumbrances in Real Estate
- Rights to Use in Real Estate
- Land & Site Valuation
- Statistics, Valuation Models & Finance for Real Estate
- Common Real Estate Calculations
- Cost Approach in Real Estate
- Income Approach in Real Estate
- Reconciliation in Real Estate Appraisal
- USPAP Compliance
- Real Estate Appraisal Report Writing