Property Valuation
In a residential appraisal, the most important comparable is generally the one that:
ASold most recently
BIs most similar to the subject property in location, size, condition, and amenities✓ Correct
CHas the highest sale price
DIs closest in distance regardless of other characteristics
Explanation
While recency and proximity matter, the most important comparable is the one most similar to the subject property in terms of location, physical characteristics, condition, and amenities.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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