A real estate appraisal method that compares a piece of property to other properties with similar characteristics that have been sold recently. The sales comparison approach takes into account the affect that individual features have on the overall property value, meaning that the total value of the property is a sum of the values of all of its features. Real estate agents and appraisers may use this approach when evaluating properties to sell.
The sales comparison approach often entails looking at local properties to see what they have in common. This allows appraisers to determine values for property features, such as fireplaces or two car garages, and requires less sophisticated statistical methods than checking on sales of properties in a wider geographic area.