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

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

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

Answer: (B)

In the direct comparison approach, you start by gathering a full set of comparable sales and relevant data, then you compare each sale to the subject property to identify how they differ. You also analyze how factors such as time of sale and other differences might impact value. The step that follows is to correlate all the gathered information and form a preliminary value estimate. This means weighing the comps, applying the appropriate adjustments for differences, and reconciling the data to arrive at a reasonable value for the subject.

In the direct comparison approach, you start by gathering a full set of comparable sales and relevant data, then you compare each sale to the subject property to identify how they differ. You also analyze how factors such as time of sale and other differences might impact value. The step that follows is to correlate all the gathered information and form a preliminary value estimate. This means weighing the comps, applying the appropriate adjustments for differences, and reconciling the data to arrive at a reasonable value for the subject.