1. The sales comparison approach

2. What we will learn Introducing the Sales Comparison Approach
Collecting Comparable Sales Data
Data Resources on the Internet
Appraisal Statistical Concepts

3. Introducing the Sales Comparison Approach
The sales comparison approach ( direct comparison, Sales, or market) is based on the Principle of Substitution.
It is a process that collects sales of comparable properties that occurred about the same time as the date of value, and compares them to the property being appraised.

4. Four Steps Research recent sales Analyze the sales
Adjust for the differences
Arrive at value estimate

5. Key Concepts of the Sales Comparison Approach
The importance of substitution
The simplicity of market comparisons
The relationship to statistics
The relevance of adjustments
The significance of market data

6. Collecting Comparable Sales Data
Selecting the Comparable Sales
Finding useful information
Sources of Market Data
Computer Data Search

7. Selecting the Comparable Sales
Three criteria of a valid comparable sale:
The Competitive Property.
An open market transaction
Date of Sale
Defining the sales search area
Consider the sales history of the subject property

8. Finding useful information
The Sales Transaction Data
Physical Characteristics of the Sale
Legal Data about the Comparable sale
Location of the sale
Market Conditions
Using Listings and Offers
How many sales?
Verification of Data

9. Sources of Market Data Public Records Multiple Listing Services
Data Services
The Insurance Companies
The Internet
Parties to the Transaction
Appraisal Office Data Files

10. Computer Data Search
Access
Procedure

11. Data Resources on the Internet
Websites of Government Agencies:
General Data on the Economy –
Bureau of Labor Statistics:
OFHEO, House Price Index:
Regulatory Information –
Department of Housing and Urban Development:

12. 2. Websites of Industry Service Organisations
Comparable Sales:
DataQuick Property Finder:
Cost and Construction:
R.S. Means Company-Cost Data:
General and Other Sites:
Realty Rates:
3. Websites of Trade assotiations
American Sociaty of Appraisers:

13. Appraisal Statistical Concepts
Calculating the central tendency includes: Mean, Median, Mode, Range, Standard deviation)
Linear and multiple regressions represent two additional statistical methods used in valuations, primarily in mass appraisal work and in loan reviews.