When applying the sales comparison approach, what is the objective of the appraiser?

• A. To locate and select sales that are the most different from the subject property.
• B. To maximize the price of the subject property.
• C. To locate and select sales that are the most similar to the subject property.
• D. To use only the newest sales.

Answer: (C)

When applying the sales comparison approach, the goal is to estimate value by comparing the subject property with sales of similar properties in the market. The key idea is to locate and select sales that are the most similar to the subject in terms of physical characteristics, location, and use so that the sale prices provide a reliable baseline with minimal adjustments. This relies on the substitution principle: buyers will pay about the same price for properties that are alike, so the more similar the comparables, the more credible the comparison. By focusing on similar properties, the appraiser can make smaller, more precise adjustments for any differences and arrive at a justified value for the subject. Choosing the most different properties would require larger adjustments and distort the estimate, and focusing only on the newest sales or trying to maximize price isn’t the objective.