What essential step does an appraiser take first in the sales comparison approach?

In the sales comparison approach, the initial step an appraiser takes is to identify features of the subject property in demand. This step is crucial because understanding what aspects of the property are appealing to potential buyers provides context for selecting appropriate comparable sales. Features such as location, size, condition, and amenities directly influence a property's market value.

By identifying desirable characteristics of the subject property, the appraiser can then look for similar properties that have recently sold to make relevant comparisons. This aligns the appraisal with current market preferences and buyer behavior, ensuring that the valuation reflects what buyers are actively seeking in the marketplace. Without this foundational understanding, the appraiser might overlook critical aspects that could affect the property's value significantly.

Identifying comparable sales and evaluating market trends are important subsequent steps, but they rely heavily on having a clear grasp of the features that are attractive to buyers. Understanding these elements from the outset allows for a more accurate and targeted selection of comparables later in the process.