How does an appraiser reconcile adjusted sales prices of comparable properties using the sales comparison approach?

Using the sales comparison approach, an appraiser reconciles adjusted sales prices of comparable properties primarily by selecting the adjusted price of the most similar property. This process involves analyzing several comparable properties that have recently sold in the market and making adjustments based on differences in features, location, and other relevant factors.

By focusing on the most analogous property, the appraiser aims to find the value that best represents the subject property among the comparables. This is because similarity in characteristics often leads to more reliable and relevant data, ensuring a more accurate appraisal outcome. The selected adjusted price reflects the market value that potential buyers would likely accept for the property being appraised.

While there are various techniques to gauge value, this approach emphasizes the importance of similarity in comparables to achieve an accurate reconciliation of prices. Options that involve averaging all comparables or discounting the highest prices may overlook the nuanced details that contribute to the true value of the subject property. Additionally, applying a market trend analysis can provide valuable insights but does not directly reconcile individual adjusted sale prices as effectively as choosing the most similar property does.