In the sales comparison approach, how is the appropriate unit of comparison chosen? a. Price per square foot is always used.
b. Price per square foot is used except for hotels, for which the price per room is used.
c. It depends on the appraisal problem. The appraiser should apply all appropriate units of comparison, explain differences in wide variation in the results, and choose the most reliable unit.
d. It depends on the extent to which each comparable property differs from the subject property.

c. It depends on the appraisal problem. The appraiser should apply all appropriate units of comparison, explain differences in wide variation in the results, and choose the most reliable unit.

Explanation:

The three (3) main methods used for the valuation or appraisal of real-estate properties are;

I. Income approach.

II. Cost approach.

III. Sales comparison approach.

A sales comparison approach can be defined as a real-estate appraisal technique that is typically based on comparing a property to other recently sold real-estate properties with similar characteristics. Thus, this appraisal method or technique requires that the real-estate property being appraised should be in current use and fall within the same area or locality as the other recently sold real-estate properties.

In the sales comparison approach, the appraised property should mimic the market behavior of other real-estate properties sold recently.

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