What does the comparative square metre/foot method help appraisers establish?

The comparative square metre/foot method is primarily utilized to help appraisers establish the market value of a property by comparing it to similar properties in the area. This approach considers the price per square metre or square foot of recently sold properties to derive a valuation for the subject property.

While building costs and land value assessments are important aspects of property appraisal, the comparative square metre/foot method specifically emphasizes market value relative to comparable sales rather than simply focusing on construction costs or raw land value. The methodology relies on gathered sales data to determine how much buyers are willing to pay for properties of similar size and structure, thereby establishing a well-informed market value for appraisal purposes.

In summary, this method's direct link to market value through comparative analysis distinguishes it from methodologies that focus strictly on costs or assessments without considering actual sales data.