Market Comparison Approach

In real estate, one of three Appraisal approaches. The value is estimated by analyzing sales prices of similar properties (Comparables) sold recently. See also Cost Approach; Income Approach.

One of 3 Appraisal Approaches. Value is estimated by analyzing sales prices of similar properties (comparables) recently sold.
Example: The subject property is a 3-bedroom, 2-bath house. Two recently sold comparables are found. The appraiser, using the market comparison approach, sets up Table 30.

Table 30 Market Comparison Approach

Subject Comparable # 1 Comparable #2

Sale price $170,500 $167,000

Date of sale last week 3 months ago (+$1,000)

3 bedrooms 3 bedrooms 3 bedrooms

2 baths 212 baths (- $2,500) 2 baths

Adjusted price $168,000 $168,000

The subject property is appraised for $168,000.