Direct Sales Comparison Approach

An appraisal method used to estimate the current fair market value of a real property by looking to the recent completed sale prices of comparable properties.

“Under the direct sales comparison approach to value, the appraiser attempts to identify comparable properties which were bought and sold by willing buyers and sellers in arm’s-length transactions on the open market at or shortly before the date of the appraisal, then to derive from their purchase prices the probable purchase price of the subject property by making appropriate adjustments for all differences between the properties that might reasonably be expected to affect their market value. Such factors include the nature and quality of the surrounding neighborhood, ease of access to municipal services, the existence of special improvements on the respective premises, the nature and quality of building construction, the existence or non-existence of encumbrances, and a host of other factors.”  Chomiak v. City of Hartford, 1994 Ct. Sup. 7686 (1994).

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