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Article: Appropriate uses of economic characteristics in the sales comparison approach.
- Article from:
- Appraisal Journal
- Article date:
- January 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 The Appraisal Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Recent refinements in sales comparison approach methods have led to confusion and frustration among appraisers who often find that, in actual practice, matched-pair analysis seldom provides conclusive adjustments for any but the largest value influences resulting from physical and locational characteristics. As a result, many adjustments used in appraisal reports are subjective and not supported by empirical market evidence. While the reality may be that market participants are not precise in their evaluation of physical and locational characteristics, lack of quantitative support for adjustments made in the sales comparison approach is a common criticism of appraisal ...