When deciding adjustments under the sales comparison approach, what factor influences the sales price the most?

The sales comparison approach in real estate appraisal relies heavily on the relationship between properties and their respective selling prices. Among the various adjustments that can be made, location stands out as a significant factor influencing sales price.

Location is crucial because it encompasses several elements that affect property value, such as proximity to amenities, schools, public transportation, and the socio-economic status of the neighborhood. Properties in desirable locations typically command higher prices compared to similar properties in less favorable areas. This principle illustrates that even if two properties are otherwise similar in physical features and size, their locations can lead to significant differences in their market values.

While terms and conditions of sale, physical features, and the date of sale are all important considerations in the appraisal process, they do not surpass the impact of location on the overall value of a property. For instance, terms of sale might adjust perceived value relative to financing and concessions, but they are secondary to the inherent desirability of the location. Likewise, although distinct features of a property may enhance its appeal, the value derived from location is generally more foundational and enduring, making it the most influential factor when determining adjustments under the sales comparison approach.