In the Sales Comparison Approach, what is the primary step after selecting comparable sales?

In the Sales Comparison Approach, after selecting comparable sales, the primary step is to adjust the comparable sale prices. This is crucial because the purpose of the Sales Comparison Approach is to estimate the value of a property based on the sale prices of similar properties in the same area. However, no two properties are exactly alike, so adjustments must be made to account for differences in features, size, location, and condition between the subject property and the comparables.

By analyzing the comparables and making these adjustments, the appraiser ensures that the final value estimate reflects a more accurate market value by factoring in the specific characteristics and conditions of each property. This step is essential for achieving a credible and defensible valuation, which is critical in various real estate transactions, including sales, financing, and taxation.