Market Comparison Approach
Definition of "Market comparison approach"
Method of appraising real estate based on the market comparison of neighboring properties having similar characteristics. Seeks to answer the question: What would it cost to substitute a similar property for the current one? The market comparison approach assumes that a buyer would not be willing to pay more for a property than recently paid for a comparable property. There still are substantial differences between two properties. This requires an individual to make a judgmental appraisal.
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Estimated market price property could bring using currently accepted appraisal methods. This might not be the same as the market price at any one given time when the seller is compelled to ...
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