In real estate appraisal, the adjusted sales price refers to the indicated price of a comparable property after adjustments have been made to account for differences between comparable and subject properties.
Appraisal by Comparison, also known as the Sales Comparison Approach, is a real estate valuation method that estimates a property's value based on the sale prices of similar properties in the same area.
A Comparative Market Analysis (CMA) is a crucial process in real estate that involves evaluating similar, recently sold properties ('comparables') to derive an estimated market value for a subject property. This aids in setting a realistic price for selling or buying real estate.
The principle of substitution posits that the value of a property is directly influenced by the availability and prices of comparable properties, assuming that a typical buyer finds similar properties interchangeable.
The Sales Comparison Approach is one of the three primary appraisal approaches used to estimate the market value of a property by comparing it to similar properties that have recently sold in the same area.
The Scope of Work is a detailed explanation of the work program undertaken to conduct an appraisal assignment, outlining the research and methods used. It is required by the Uniform Standards of Professional Appraisal Practice (USPAP).
A unit of comparison is a critical tool used in real estate appraisal to compare properties of varying sizes and characteristics. These units ensure consistent evaluation and assist in determining a property's fair market value.
