What is the primary goal of performing a sales comparison approach appraisal?

The primary goal of performing a sales comparison approach appraisal is to establish a market value based on similar properties. This method involves analyzing recent sales of comparable properties in the same area to assess what buyers are willing to pay for a property with similar characteristics. By looking at comparable sales, an appraiser can determine a fair market value that reflects current market conditions.

The sales comparison approach is particularly valuable because it relies on real transaction data rather than theoretical or subjective measures. This method helps ensure that the appraisal reflects the dynamics of the local real estate market, enabling sellers and buyers to make informed decisions based on actual market trends.

Overall, the primary objective is to provide an evidence-based estimate of value that aligns with what the market will bear, which is critical for homeowners, buyers, sellers, and real estate professionals.