Data used in sales comparison appraisals are usually local, but national data may be appropriate in some cases.

• A. False
• B. True
• C. Not applicable
• D. Depends on market

Answer: (B)

Data used in the sales comparison approach come from the subject’s local market because prices and conditions vary widely by neighborhood and area, and the goal is to reflect the specific market in which the property competes. Local comparables capture current demand, financing, and time on the market that directly influence value. National data can be appropriate only as a supplement when local data are sparse or for properties with inherently national or broad-market dynamics; when used, adjustments must account for differences in location and market conditions so the information remains relevant to the subject. In practice, local data form the core of the analysis, with national data providing context or triangulation in limited cases. This statement is true.