About This Chapter
Sales Comparison Approach to Real Estate Valuation - Chapter Summary
As you work through this chapter, you'll review essential concepts related to the sales comparison approach. Take a look at quantitative adjustments and ways to identify comparable sales. Our lessons also go over the following concepts:
- Definition of the comparative sales approach to property valuation
- Elements of comparison such as financing, market conditions and location
- Difference between qualitative and quantitative adjustments
Our instructors have broken these concepts up into manageable pieces to make them easy for you to understand. You can access these lessons as many times as you'd like until you've mastered these concepts. Test your knowledge with short lesson quizzes and the full chapter exam. If you are having difficulties, our instructors are available to answer any questions that may come up.
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.
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Other chapters within the Florida AQB Certified General Appraiser Exam: Study Guide course
- The Real Estate Market
- Real Estate Investment & Analysis
- Land Use & Regulations
- Transferring Real Property
- Land Descriptions & Surveys
- Forms of Property Ownership
- Advanced Property Ownership Issues
- Land & Site Valuation
- Cost Approach to Real Estate Valuation
- Income Approach to Real Estate Valuation
- Uniform Standards of Professional Appraisal Practice (USPAP)