What is the first step in applying the direct comparison approach?

What is the first step in applying the direct comparison approach?

• A. Correlate the data and make preliminary value estimate.
• B. Gathering all comparable sales, listings, offers and rental locations, and check pertinent information on each.
• C. Analyze the data regarding differences in time of sale and other factors.
• D. Compare each sale to the subject property.

Answer: (B)

The first step in the direct comparison (sales) approach is to gather all relevant data on potential comparables. This means collecting comparable sales, current listings, offers, and even rental information for properties that are similar to the subject. Having a complete, accurate set of comparables and their pertinent details—such as sale price, date of sale, terms, location, size, condition, features, and any concessions—provides the foundation for making meaningful comparisons. Once this data is gathered, you can identify which comparables are most similar and begin adjusting for differences, as well as accounting for changes in market conditions over time. Without assembling this data first, any subsequent adjustments or analyses would be unfounded.

The first step in the direct comparison (sales) approach is to gather all relevant data on potential comparables. This means collecting comparable sales, current listings, offers, and even rental information for properties that are similar to the subject. Having a complete, accurate set of comparables and their pertinent details—such as sale price, date of sale, terms, location, size, condition, features, and any concessions—provides the foundation for making meaningful comparisons. Once this data is gathered, you can identify which comparables are most similar and begin adjusting for differences, as well as accounting for changes in market conditions over time. Without assembling this data first, any subsequent adjustments or analyses would be unfounded.