In an appraisal using three comparables, which factor is likely to weigh most heavily?

In an appraisal that utilizes three comparable properties, the location of the properties generally weighs most heavily in determining value. This importance stems from the principle of substitution, which states that a property's value is influenced by what buyers are willing to pay for similar properties in the same area.

Location affects a multitude of factors, including market demand, the quality of local schools, proximity to amenities, neighborhood safety, and overall desirability of the area. Different neighborhoods can have vastly different property values, even for homes of similar features and sizes.

While factors such as size, condition, and age of the property are important and contribute to the overall value assessment, they often play a more secondary role and are evaluated after the location has established a baseline of value. For instance, two homes may have similar sizes and conditions, but if one is in a much more sought-after location, it will typically command a higher market price. Understanding the context of location helps appraisers make more accurate assessments and helps ensure that the appraisal reflects the current market conditions.