Sales comparison approach definition

Sales comparison approach means the procedure that values property by comparing the subject property to similar properties located in relatively close proximity, having similar size and utility, and having been recently sold in arm’s-length transactions (com- parable sales). The sales comparison approach requires the evaluator to es- timate the degree of similarity and dif- ference between the subject property and comparable sales. Such comparison shall be made on the basis of condi- tions of sale, financing terms, market conditions, location, physical charac- teristics, and income characteristics. Appropriate adjustments shall be made to the sales price of the comparable property based on the identified defi- ciencies or superiorities of the subject property to arrive at a probable price for which the subject property could be sold on the date of the collateral eval- uation.

Sales comparison approach. This valuation approach is based upon the principle of substitution. When a facility is replaceable in the market, the market approach assumes that value tends to be set at the price of acquiring an equally desirable substitute facility. Since healthcare market conditions change and frequently are subject to regulatory and financing environments, adjustments need to be considered. These adjustments also consider the operating differences such as services and demographics.

Sales comparison approach means the collection, verification, and screening of sales data, stratification of sales information for purposes of comparison and use of such information to establish the fair cash value of taxable property;

Examples of Sales comparison approach in a sentence

• As an income-producing property, greatest reliance is placed upon the value derived through the Income Capitalization Approach, with support provided by the conclusion rendered through implementation of the Sales Comparison Approach.

• SALES COMPARISON CONCLUSION The three valuation methods in the Sales Comparison Approach are shown below.

• HISTORICAL EVIDENCEGenerally, the sales in the Sales Comparison Approach were on the market for one to two years.

• The Sales Comparison Approach produces an estimate of value through a comparison of similar properties, which have been transferred in the local market.

• These are the Cost Approach, Sales Comparison Approach, and Income Approach.

• Responsibility to Report The responsibilityfor reporting is imposed on each Reporting Person required to make a report to ensure that Compliance is in receipt of timely and complete reports.

• The value of the Turbines shall be determined as the lesser of the values produced by the Replacement Cost Approach and the Sales Comparison Approach, assuming, in both Approaches, payment in full and delivery of the Turbines.

• In performing the Sales Comparison Approach, the Appraiser shall only consider equipment from Comparable Manufacturers.

• The weakness of the Sales Comparison Approach is that no two properties are exactly alike and exact conditions of a sale are often unknown.

• The key to the Sales Comparison Approach is that a sufficient number of comparable sales be present to reflect an accurate indication of value.

More Definitions of Sales comparison approach

Sales comparison approach means an approach to valuing real estate that requires an appraiser to analyze such comparable sales data as are available to indicate a value conclusion.

Sales comparison approach means the collection,

Sales comparison approach. This valuation approach is based upon the principle of substitution. When a facility is replaceable in the market, the market approach assumes that value tends to be set at the price of acquiring an equally desirable substitute facility. Since healthcare market conditions change and frequently are subject to regulatory and financing environments, adjustments need to be considered. These adjustments also consider the operating differences such as services and demographics. Cost Approach: This valuation approach estimates the value of the tangible assets only. Value is represented by the market value of the land plus the depreciated reproduction cost of all improvements and equipment. In general, the Income and Sales Comparison Approaches are considered the best representation of value because they cover both tangibles and intangible assets, consider the operating characteristics of the business and have the most significant influence on attracting potential investors. The appraised values submitted by the three appraisers shall be ranked from highest value to middle value to lowest value, the appraised value (highest or lowest) which is furthest from the middle appraised value shall be discarded, and the remaining two appraised values shall be averaged to arrive at the Fair Market Value.

Sales comparison approach means a determination of the value of a mortgaged real property based upon a comparison of that property to similar properties that have been sold recently or for which listing prices or offering figures are known. In connection with that determination, data for generally comparable properties are used and comparisons are made to demonstrate a probable price at which the subject mortgaged real property would sell if offered on the market.