The sales comparison approach (SCA) is one of the three major groupings of valuation methods, called the three approaches to value, commonly used in real estate appraisal. This approach compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions. The process uses one of several techniques to adjust the prices of the comparable transactions according to the presence, absence, or degree of characteristics which influence value. As such, all sales comparison approach methods are variations on hedonic-type measurements, which determine the value of something as the sum of the value of the various components which contribute utility.
Read more about Sales Comparison Approach: Units of Comparison, Economic Basis, Examples of Methods, Further Reading
Famous quotes containing the words sales, comparison and/or approach:
“The damned are in the abyss of Hell, as within a woeful city, where they suffer unspeakable torments, in all their senses and members, because as they have employed all their senses and their members in sinning, so shall they suffer in each of them the punishment due to sin.”
—St. Francis De Sales (1567–1622)
“Away with the cant of “Measures, not men!”Mthe idle supposition that it is the harness and not the horses that draw the chariot along. No, Sir, if the comparison must be made, if the distinction must be taken, men are everything, measures comparatively nothing.”
—George Canning (1770–1827)
“So live that when thy summons comes to join
The innumerable caravan that moves
To that mysterious realm, where each shall take
His chamber in the silent halls of death,
Thou go not, like the quarry-slave at night,
Scourged to his dungeon, but, sustained and soothed
By an unfaltering trust, approach thy grave
Like one who wraps the drapery of his couch
About him and lies down to pleasant dreams.”
—William Cullen Bryant (1794–1878)