Which of the following best defines the term "comparable properties" in appraisal practice?

The term "comparable properties" specifically refers to properties that share similar characteristics with the subject property and have recently sold in the same area. This is essential in appraisal practice as it provides a benchmark for determining the market value of the property being appraised. Comparable properties typically include various features such as size, age, condition, location, and amenities, all of which significantly influence property values.

Utilizing properties that resemble the subject in terms of the aforementioned characteristics helps ensure a more accurate and fair valuation. It allows the appraiser to assess market trends and pricing in a localized context, leading to a more reliable appraisal report.

In contrast, properties that are significantly older, larger, or located in different neighborhoods do not represent a true comparison and could result in misleading or inaccurate appraisals. Utilizing such properties wouldn't accurately reflect the market conditions affecting the subject property's value, which is why they are not defined as comparables in appraisal practice.