What must appraisers do when using the comparison method?

When appraisers use the comparison method, they focus on making adjustments for differences in comparable properties. This approach is fundamental because no two properties are exactly alike; they will vary in terms of features such as size, condition, age, and location. By adjusting for these differences, appraisers can effectively estimate the value of the subject property based on the sale prices of comparable properties.

Adjustments are made to account for both positive and negative attributes that might affect value. For instance, if a comparable property has an extra bedroom that the subject property does not, the appraiser would make a downward adjustment to the price of the comparable property to reflect its additional value. This allows for a more accurate comparative analysis and helps ensure that the appraiser's valuation is well-supported by market data.

Considering only recent sales, disregarding property condition, or solely focusing on location would not provide a complete or accurate picture, as many variables can impact property values in any given market. Each aspect contributes to a thorough and fair appraisal through the comparison method, but the cornerstone of this approach is the necessary adjustments made for differences between the properties being evaluated.