What is the purpose of making a 'Comparison Analysis' when appraising property?

The purpose of making a 'Comparison Analysis' when appraising property is primarily to evaluate properties against comparable ones. This method involves analyzing similar properties that have recently sold in the same area to derive an estimated value for the subject property. By comparing features such as location, size, condition, and amenities, appraisers can arrive at a fair market value that reflects current market trends and buyer preferences. This approach helps ensure that the appraisal is based on realistic, market-driven data rather than arbitrary figures.

In this context, evaluating properties against comparable ones provides a well-rounded perspective on how the subject property stands in relation to similar listings. It allows for adjustments based on specific differences between the properties, which is crucial in accurately determining value.

The focus on maintenance costs, future price trends, or construction expenses, while important in their own right, does not directly pertain to the primary goal of comparison analysis in property appraisal. These factors can play a role in the overall assessment but are not the core aim of the comparison analysis itself.