How do appraisers use comparable sales?

Appraisers utilize comparable sales primarily through the method of adjusting sale prices of similar properties based on various factors to reach a more accurate valuation. This approach involves analyzing properties that have recently sold in the same market area as the subject property and making necessary adjustments for differences in characteristics such as square footage, age, location, amenities, and condition.

By making these adjustments, appraisers can account for variations that may impact the market value, thereby ensuring that comparisons are more reflective of what the subject property is worth. This method allows for a more nuanced and precise valuation, as it incorporates specifics of the subject property and the market dynamics present at the time of sale.

In this context, the other options do not accurately reflect the common practices of appraising. Ignoring differences would lead to inaccurate assessments, calculating construction costs does not factor in current market conditions, and focusing solely on sales from the last year may overlook valuable data from other time frames that could influence current market trends.