The objective of the Sales Comparison Approach is to formulate an opinion of value based on the recent sales of properties of similar use, size, locational influences, and other factors that affect value. This approach makes the most direct use of the Principle of Substitution.
The three key factors are location, size, and style. In a changing market, recent sales are particularly important.
After searching by location, size, and style, I use the results to identify the most likely substitutes for the home being valued. Sometimes, lot size, view, condition, or other characteristics of the subject property are used to finalize the most likely substitutes.
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