What is the adjusted sale price based on in the direct comparison approach?

The adjusted sale price in the direct comparison approach is based on the sale price of a comparable property after adjustments. This method requires real estate professionals to analyze similar properties that have recently sold to determine an accurate estimate of the value of the subject property.

When using this approach, appraisers or agents look at the sale prices of comparable properties and make necessary adjustments to account for differences between those properties and the subject property. Such adjustments can be made for factors like size, location, condition, and features. The objective is to arrive at a fair market value for the subject property, reflecting what it would likely sell for in the current market conditions.

Therefore, the adjusted sale price is the direct result of these comparisons and modifications, allowing for a more precise reflection of value based on actual market activity rather than relying solely on averages or subjective estimates. This method is commonly employed because it provides a tangible basis for property valuation rooted in real-world data.