North Carolina 75-Hour Broker Course Practice Test 2025 – Complete Exam Prep

The sales comparison approach is utilized by appraisers to analyze comparable properties because it involves evaluating similar properties that have recently sold in the same area to estimate the value of a subject property. By comparing various attributes such as location, size, age, and condition among these comparable properties, the appraiser can derive a value range for the subject property based on actual market data.

This method relies heavily on recent sale transactions, making it an effective tool for determining market trends and nuances in property values. The appraiser adjusts the sale prices of the comparable properties to reflect differences from the subject property, which provides a more accurate appraisal value.

Other options like the multiple listing service are primarily tools for listing properties and searching for sales data, but they do not specifically facilitate the analytical comparison directly. Automated valuation models, while useful for generating quick estimates, tend to lack the nuanced analysis that a sales comparison approach provides. The cost approach focuses on the cost to replace or reproduce the property rather than its market value, which can also lead to differing conclusions on value than what comparable sales would reveal.