In the eight-step appraisal process, at which step is the direct comparison approach applied?

In the eight-step appraisal process, at which step is the direct comparison approach applied?

• A. Step 4
• B. Step 2
• C. Step 6
• D. Step 8

Answer: (A)

Direct comparison, or the market data approach, uses prices from recently sold, similar properties to estimate value. The step in the eight-step appraisal process where you gather market data and identify appropriate comparables is the point where this approach is applied. At this stage you collect, compare, and adjust based on differences between the subject and its comps, producing value indications derived from actual market transactions. Other stages focus on data gathering for other methods or on final value reconciliation, so the market-data approach naturally fits the data-collection stage, making it the best fit for this step.

Direct comparison, or the market data approach, uses prices from recently sold, similar properties to estimate value. The step in the eight-step appraisal process where you gather market data and identify appropriate comparables is the point where this approach is applied. At this stage you collect, compare, and adjust based on differences between the subject and its comps, producing value indications derived from actual market transactions. Other stages focus on data gathering for other methods or on final value reconciliation, so the market-data approach naturally fits the data-collection stage, making it the best fit for this step.