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The sales comparison approach (SCA) is a real estate appraisal valuation method that relies on the assumption that a matrix of attributes or significant features of a property drive its value. For examples, in the case of a single family residence, such attributes might be floor area, views, location, number of bathrooms, lot size, age of the ...
The approach recognizes that a typical buyer will compare asking prices and seek to purchase the property that meets his or her wants and needs for the lowest cost. In developing the sales comparison approach, the appraiser attempts to interpret and measure the actions of parties involved in the marketplace, including buyers, sellers, and ...
Appraisal methodology more or less treats hedonic regression as a more statistically robust form of the sales comparison approach, [2] making it a popular means for assessment in any market or economic sector in which valuation between two categorically similar (or same) goods (such as two different kitchenware sets) can differ greatly based on ...
A valuation multiple [1] is simply an expression of market value of an asset relative to a key statistic that is assumed to relate to that value. To be useful, that statistic – whether earnings, cash flow or some other measure – must bear a logical relationship to the market value observed; to be seen, in fact, as the driver of that market value.
Comparable sales analysis of like properties. Current like properties being actively marketed. In the late 1990s, in the US, this technology was used primarily by institutional investors to determine risk when purchasing collateralized mortgage loans. AVMs gained traction in the UK in the early 2000's with the emergence of UKValuation and ...
Sales comparison approach: The grid analysis, this is where the property being appraised is compared to recent sales of other properties. [3]
The Vergleichswertverfahren (sales comparable approach) is mainly used to determine the value of owner-occupied buildings (single-family houses, condominiums) and land. The Sachwertverfahren (cost approach) is only used for special use properties that do not produce a measurable future cash flow. Subsequently, the EWV is used for the vast ...
Comparables (or comps) is a real estate appraisal term referring to properties with characteristics that are similar to a subject property whose value is being sought. This can be accomplished either by a real estate agent who attempts to establish the value of a potential client's home or property through market analysis or, by a licensed or certified appraiser or surveyor using more defined ...