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.
Popular Real Estate Terms
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Insurance or maintenance policy taken out by a buyer of real or personal property. ...
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provision in a written agreement allowing the prospective purchaser the right to cancel the contract if occupancy requirements are not satisfied as of a specific date. ...
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Unimproved property. It has no utilities, sewers, streets, or structures and usually must be cleared. ...
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