In the Sales Comparison Approach, how many comparables are usually used and within what distance?

In the Sales Comparison Approach, how many comparables are usually used and within what distance?

• A. Usually 3 comparables within 1 mile
• B. Usually 5 comparables within 5 miles
• C. Usually 1 comparable within 10 miles
• D. Usually 4 comparables within 2 miles

Answer: (A)

In the Sales Comparison Approach, value is estimated by comparing the subject property to recent sales of similar properties. Using three comparables provides enough data to make reasonable adjustments for differences in size, features, and condition, without making the analysis unwieldy. Keeping those comparables within a short distance—about one mile—ensures they share the same neighborhood characteristics and current market conditions, so the data is truly comparable to the subject. While more comps or slightly farther distances can be used in some cases, the standard teaching scenario uses three comparables within one mile, making it the best match for this question.

In the Sales Comparison Approach, value is estimated by comparing the subject property to recent sales of similar properties. Using three comparables provides enough data to make reasonable adjustments for differences in size, features, and condition, without making the analysis unwieldy. Keeping those comparables within a short distance—about one mile—ensures they share the same neighborhood characteristics and current market conditions, so the data is truly comparable to the subject. While more comps or slightly farther distances can be used in some cases, the standard teaching scenario uses three comparables within one mile, making it the best match for this question.