market comparison approach

market comparison approach

A method of appraising property by analyzing the prices of similar properties sold in the recent past and then making adjustments based on differences among the properties and the relative age of the other sale.More properly called the direct sales approach. See also comparables. The other two methods are the cost approach and the income approach.

References in periodicals archive ?
For the purposes of illustrating how an income approach might be used to develop the value of the real property component of a casino going concern, this article will use a market comparison approach with an EBITDA (debt-free) multiplier, and then apply an allocation based on a percent of the total represented by the real property contribution.
While British valuers, who influence appraisal in many parts of the world, do not generally confine their appraisal analyses confine their appraisal analyses analyses to only three approaches, they do tend to focus as well on appraisal concepts and methods that are related to the cost approach, the market comparison approach, and the income approach.
At the outset, the market comparison approach seems suitable, but Czechoslovak appraisers cannot use statistical methods because of the lack of sufficiently large data samples for comparison.
Omni's appraiser testified that he used only the income approach to valuation in his appraisal; he found that the cost and market comparison approaches were inappropriate because of the building's unique character and the lack of comparable sales within the area.