1. 12 The Sales Comparison Approach
Information is gathered on subject property and
comparable properties that have sold or been
listed for sale recently
Uniform Residential Appraisal Report (URAR) is
required by Fannie Mae and Freddie Mac for
appraisal of a detached single-family residence

2. URAR Comparable Sales Grid
Sale/Financing Concessions
Above-Grade Room Count
Date of Sale/Time
Gross Living Area
Location
Basement/Finished Rooms Below Grade
Leasehold/Fee Simple
Functional Utility
Site/View
Heating/Cooling
Design (Style)
Energy Efficient Items
Quality of Construction
Garage/Carport
Actual Age/Condition
Porch/Patio/Deck

3. Compliance with UAD
Compliance with Uniform Appraisal Dataset (UAD) is required for mortgage loans purchased by Fannie Mae and Freddie Mac Complete UAD Field Specific Standardization Requirements are available at efanniemae.com

4. Form Opinion of Value by Sales Comparison Approach
Most difficult step in sales comparison approach is determining the amount of each adjustment.

5. Factors That Should Be Similar
Style of house Age Number of rooms Number of bedrooms Size of lot Size of dwelling Terms of sale Type of construction General condition

6. Major Categories of Adjustment
Date of sale Location Physical features—age, number of rooms, layout (functional utility), square feet of living space, exterior and interior condition, presence or absence of special features Terms and conditions of sale—important if sale is not financed by a standard mortgage

7. Adjustment Process
Types of adjustments are usually a dollar amount, but could be a percentage Adjustment values computed by matched pairs analysis (MPA), also called paired sales analysis or paired data set analysis Adjustments made in sequence, with those affecting overall property value made first Information recorded Net adjustments calculated Opinion of value determined

8. Application of Sales Comparison Approach
Advantages
Reflects the activity of the marketplace
Relatively simple to understand and use
Considered reliable and objective
Disadvantages
Lack of comparable sales possible
Depends on making accurate adjustments